Jazztel at loggerheads with Telefónica over service charges

18 Oct 2006

Spanish alternative operator Jazz Telecom (Jazztel) has confirmed it is engaged in a dispute with fixed line incumbent Telefónica de España over service charges, following press reports that it is suing its rival. Jazztel makes no mention of legal action, but says it is in dispute over invoices amounting to around EUR24 million for wholesale fixed line services provided by Telefónica. It claims it has sent letters seeking clarification of the amount, but that Telefónica has not yet responded, and that it has also sent copies to the Telecommunications Market Commission (CMT). In the interim it says it has made a EUR5.6 million down payment on the outstanding amount. Separately, Jazztel has confirmed that Telefónica owes it EUR18.53 million related to an earlier dispute, on which the CMT ruled in its favour. Telefónica has yet to comment.

Spain, Jazztel, Telefonica Espana (Movistar)