Former stockbroker, Oisín Fanning, founded Smart Telecom in 2000, initially as a player in the payphone market.

The company has developed since then into one of the biggest competitors to dominant player Eircom in the fixed-line business.

It has also expanded into broadband, the high capacity internet service, which it has been selling aggressively to the residential and business markets.

Last year, communications regulator, ComReg, offered Smart the Republic's last remaining licence to operate a third generation (3G) mobile network.

3G is the latest stage of mobile technology, and can deliver video, audio, internet and other services to users' handsets. ComReg withdrew this offer yesterday.

Also last year, Smart was in the race for the Republic's smallest existing player, Meteor, but was beaten to the line by its biggest rival, Eircom.

In 2004, Smart raised €15 million from a flotation on London's Alternative Investment Market, which it used to phase its initial expansion in fixed-line telecoms.

The company has proved adept at raising cash and attracting the backing of some big names in Irish business.

Brendan Murtagh and his family, the people behind listed building materials specialist, Kingspan, hold 22 per cent of the company. Mr Murtagh has also guaranteed a bank loan to Smart of €28.35 million, which the company borrowed to begin developing its 3G network.

At the same time, Seán Quinn, whose interests range from cement to financial services, loaned the company €28.35 million through his Quinn Group.

That loan can be converted to equity. Quinn Group also holds a small stake in the business. If the loan were converted, its total interest would be 19 per cent.

Last year Smart raised €55 million through a share placement in London. The money was earmarked for the expansion of its broadband network. The company employs 430 people and has over 70,000 subscribers.