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Legal challenge in Spain

date: 04 November 2000, source: UMTS Weekly

The Government in Spain may be taken to court by the four 3G licence holders after it announced it may raise the fees. The various consortia allege that after the Government had seen the sums raised by other nations and realised the comparatively low prices it charged for licences, it is trying to get make more money. The Spanish licence allocation was one of the earliest, back in March and raised only EUR520M. The Government will increase the annual radio spectrum fee to EUR150M for 2001, it was only EUR5M last year. The Government even admit it had had second thoughts after seeing the British and German auctions and claim that Spain's telecoms code allows the Government to change the tax regime as it saw fit. Operators are complaining as it is has rendered business plans useless and has undermined the profitability of the project. The consortia have also been subject to an investment schedule and a deadline of August 2001 for service rollout in 23 Spanish cities. Delays are punishable with hefty fines.

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