Austria’s higher administrative court has turned down T-Mobile’s request to grant a temporary injunction on the transfer of spectrum resulting from Hutchison Whampoa’s takeover of Orange Austria until it reaches a final decision on the…
Austria’s higher administrative court has turned down T-Mobile’s request to grant a temporary injunction on the transfer of spectrum resulting from Hutchison Whampoa’s takeover of Orange Austria until it reaches a final decision on the appeal.
Österreichischer Verwaltungsgerichtshof (VWGH) decided not to grant the injunction on the grounds that Deutsche Telekom-owned T-Mobile Austria has not proven that the deal would put the company at a disproportionate economic disadvantage. Its final decision on the frequency transfers is still pending.
T-Mobile had appealed telecoms regulator TKK’s decision clearing the transfer of frequencies, arguing it would distort competition.
T-Mobile claimed the decision would allow Hutchison and Telekom Austria to expand UMTS and LTE-based services at faster rates, putting competitors at an unacceptable disadvantage.
Today, a spokesperson for T-Mobile Austria told TelecomFinance that the company expects VWGH to reach a final decision on the matter by March or April, unless it turns to the European Court for legal advice. In that case, he said a decision could not be expected for at least two years.
The spokesperson said T-Mobile has resolved to be “practical” about the merger and has adjusted its business strategy to the fact there are now only three players in the domestic market.
“Should the court rule in our favour at some point, it would be a bonus, but it is not what we are counting on going forward,” he said.
Hutchison announced on 3 January that it had closed its €1.3bn takeover of Orange Austria.
The takeover of no frills brand Yesss! by Telekom Austria – a smaller, associated transaction – closed the same day.
However, at the time, not all associated deals had closed. In addition to its takeover of Yesss!, Telekom Austria had also agreed to acquire frequencies, base station sites, and certain intellectual property rights owned by Orange Austria, for a total of up to €390m.
“The closing of the acquisition of the other assets will follow gradually,” the company said in its statement.
