Two UK 3G operators want to extend payment time

date: October 17, 2001

The High Court will rule on Wednesday whether the extension of time given to Vodafone and Orange by the government to come up with payment for their 3G mobile licences was unfair.

British Telecommunications and One-2-One say it was wrong of the government to grant an extra 180 days for Vodafone and Orange to pay a combined ten billion pounds for their third generation mobile phone licences.

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 One-2-One argue that the extension saved their rivals around two million pounds a day in interest on loans. They say a fundamental rule of the auction was that there should be no distortion of competition.

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