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Thu 18 Jan 2007 05:05 PM

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ACT initiates legal action

ATCO Clearwire Telecom (ACT) has filed a lawsuit against the Bahraini TRA over its licence auction.

ATCO Clearwire Telecom (ACT) has filed a lawsuit against the Bahraini TRA over its licence auction.

ACT claims that, under the rules of the tender process for the fixed wireless service licence, it should have received one of the licences and is requesting a restraining order to prevent or freeze the licence award to the declared winners Mena Telecom and MTC Vodafone-Bahrain.

ATC's lawsuit alleges that the TRA (telecommunications regulatory authority) failed to follow its own legally bind auction rules under the invitation to tender.

It states that neither of the two announced winners offered valid financial bids and therefore should have been disqualified from the auction, according to the TRA's rules which stipulated that the licences would be awarded to the bidders who offered the highest valid financial bids.

Mena Telecom and MTC-Vodafone Bahrain were issued the licences on January 8 2007, beating four other bidders including ACT.

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