BT and One2One in court to resolve 3G auction

date: June 18, 2001

BT and One2One when to court on Monday in a legal battle with the UK government over its handling of June last year's auction for 3G mobile phone licences.

The two companies both won a 3G licenses at a cost of around £3.8billion each license, were appealing against a court ruling that the government behaved unfairly by granting a payment delay to Vodafone and Orange.

They were given longer to pay because Vodafone was in the process of selling Orange, and auction rules prevented one company from owning two licences.

BT and One2One argue that the 180-day extension saved their rivals around two million pounds ($2.8 million) a day in interest on loans. They say a fundamental rule of the auction was that there should be no distortion of competition.

The UK government netting £22.5billion from the sales of the 3G five licenses to: TIW, One2One, Orange, Vodafone, BT Cellnet.

The hearing is expected to end later this week.

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