Court rejects Telefonica's 3G licence fee repayment suit

News Wireless Germany 18 AUG 2011
Court rejects Telefonica's 3G licence fee repayment suit
Germany does not have to pay back the EUR 8.4 billion it received from a consortium led by Telefonica in a mobile spectrum auction in 2000, according to a ruling by the Federal Administrative Court in Leipzig upholding earlier decisions of lower courts. In the 2000 auction, Germany sold 3G spectrum at record prices, raising a total of around EUR 50 billion, to five bidders including a consortium between Telefonica and Finnish former incumbent Sonera, called Quam. The consortium ad to give it back without being reimbursed, after the consortium failed to meet network expansion targets set by the regulator as a condition of the sale. Quam then filed a lawsuit against the German government demanding repayment of the licence fee. The claim was dismissed by lower courts and the Federal Administrative Court confirmed their rulings. Telefonica did become active in Germany as mobile operator when it acquired O2 in 2006.

Categories:

Mobile

Companies:

O2,  Telefonica- Movistar,  Sonera

Countries:

Germany

Tags:

3G, Regulations, Legislation - Lawsuits

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