Court rejects '3G payment delays' claim

UK Court of Appeal judges today [Wednesday] ruled against BT and One2One's claim that allowing rival operators more time to settle third-generation (3G) bills amounted to unfair government aid.

The Government allowed Vodafone and Orange extra time, some 180 days, to settle their multi-billion pound bills, saving millions in interest. BT and One2One claimed the decision effectively cost them around £85m.

But Court of Appeal judge Lord Philips said the way the matter was handled had not given Vodafone and Orange an unfair advantage.

"Any difference of treatment that had occurred was objectively justified," he said. "The conduct of the Secretary of State was not unfair, irrational or unreasonable in any way."

The two firms were given an extension because Vodafone was in the process of selling Orange as part of its takeover of Orange's then owner, Germany's Mannesmann. UK auction rules forbid one firm from owning two licences.

Separately, the French Government has slashed the cost of its 3G licences in the face of rebellion from Vivendi Universal, one the current licence holders, and difficulty in selling its two remaining licences.

Shares in Vivendi and France Telecom soared by 12 and 15 per cent respectively on the news.

See also:

Orange tells Oftel to back off

Operator threatens to reassess 3G strategy  25 Jun 2002

Mobile operators make European move

One2One and mmO2 go to European Court over rivals 'unfair advantage'  26 Nov 2001

3G is at least three years away

Motorola boss praised for coming clean on 3G delays  29 Oct 2001

3G goes live, industry crosses fingers

'On' switch hit despite poor trial results  01 Oct 2001

3G: Beyond the hype

The third-generation (3G) licence frenzy has left mobile operators with empty pockets and a head full of hype, wondering whether they can find a killer app to justify the billions spent on the licences.  01 May 2001

UK mobile auction could face probe

The National Audit Office is considering whether to launch an investigation into the UK government's auction of third generation mobile phone licences earlier this year.  24 Jul 2000

UK government slammed over 3G auction

The UK government's handling of the sale of 3G licences has been vilified by experts who have predicted that the cost of the services will rocket.  15 Jun 2000

UK government awaits One 2 One lawsuit

Mobile phone operator One 2 One yesterday launched legal action against the UK government, accusing it of acting unfairly in the third generation (3G) mobile phone licence auction.  09 May 2000

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