Telefonica O2 and T-Mobile dispute rumbles on

15 Apr 2008

Telefonica O2 Czech Republic is challenging a lower Czech court decision over repossession of property in a long running dispute with rival cellco T-Mobile Czech Republic. Last year a court ordered the repossession of Telefonica O2 property on the behest of T-Mobile following a clash over interconnection fees. However, Telefonica O2 wants to pay financial compensation of CZK2 billion (USD129 million) to T-Mobile instead, and then be allowed to proceed with the planned property divestment put on hold by the court’s repossession. ‘We are going to pay the disputed CZK2 billion fee, but this in no way means we have accepted T-Mobile’s claim and we are doing this to unblock the frozen properties,’ said Jakub Chytil, a member of the Telefonica O2 board of directors, in a conference call. Chytil added that he expects T-Mobile will ultimately lose the case over interconnection fees, and is confident at least a portion of the CZK2 billion compensation will later be returned to Telefonica O2.

Czech Republic, O2 Czech Republic (incl. CETIN), T-Mobile Czech Republic