Out-Law / Your Daily Need-To-Know

BT and One2One have failed in their second attempt to recoup the £85 million that they claim is owed to each of them by the government. The companies are attempting to sue the government for the amounts which they allege are due to them as lost interest for 3G licence payments.

The companies bought 3G licences form the UK government in May 2000, 3 months before Vodafone and Orange did so. During this period, Vodafone had been in the process of buying the German company Mannesman. At the time, Mannesman had owned Orange which was then sold by Vodafone to France Telecom.

BT and One2One both paid in the region of £4 billion for their 3G licences, the later payments by Vodafone and Orange amounted to £6 billion and $4.1 billion respectively. Thus, BT and One2One are claiming for interest on their payments amounting to £1 billion per day and claim that the UK government had given Vodafone and Orange an unfair competitive advantage.

These claims however did not stand up in court in October 2000 nor on appeal earlier this year. Today the companies were refused leave to take their arguments to the House of Lords but have stated an aim to present the case to the higher authority of the Law Lords.

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