Telefonica to settle UMTS tax law today

date: November 26, 2001

Spanish mobile telephony operator Telefonica Moviles, the company most affected by the controversial UMTS tax, will decide today whether or not to pay the charge and whether or not to go ahead with a legal battle against the government by taking the case to the high court. The tax was fixed by the government last year to compensate for the revenues lost from not awarding licences in an auction by contest. The tax for 2001 was fixed at 961m euros (Pta160bn) for all operators using the radioelectric spectrum. Of this sum Telefonica was the most-affected with around 228m euros.

Although the tax has been cut by an average of 62 per cent for 2002 and successive years it has sparked all forms of protests and legal action from the operators. The deadline ends this week for operators interested in taking the legal battle to the end to file their suits. According to close sources Telefonica Moviles is prepared to pay the 2001 tax whether or not it finally decides to appeal to the high court.

In October, Telefónica Móviles España has made the first public third-generation voice and data calls carried out by a European operator, during the UMTS Congress which opened in Barcelona.

Reports during the summer suggested that shareholders in Spain's 3G newcomer, Xfera, were looking to sell the firm to France Telecom becuase of high UMTS tax law in Spain.

Top Sellers at our online store

1.	NEC e606 on 3
2.	Orange Nokia 7250i
3.	O2 Samsung A800
4.	NEC e808 on 3
5.	Motorola A920 on 3

last updated: January 12, 2004

Visit our online store, click here

3 phones

3G Motorola A920
Available Now! Superb full colour touch- sensitive screen with a built-in digital camera for Video Calling.
Buy now from Free

M-Profits: Making Money from 3G Services
ISBN: 0470847751

This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

buy it UK | USA

3G Books to Read!

top