Hutchison Whampoa’s H3G has become the second Austrian mobile operator to threaten legal action against the results of the nation’s 4G spectrum auction. Like T-Mobile Austria, H3G said it intends to appeal against the results to the administrative…
Hutchison Whampoa’s H3G has become the second Austrian mobile operator to threaten legal action against the results of the nation’s 4G spectrum auction.
Like T-Mobile Austria, H3G said it intends to appeal against the results to the administrative and constitutional courts and has called for a new tender process.
CEO Jan Trionow described the October auction, which raised €2bn (US$2.7bn), as unlawful in both form and content, saying it has resulted in considerable damage to the company. H3G paid €330m (US$445.9m) for spectrum in the auction.
Trionow believes holding a new tender process is the only way to remedy the situation, and expects the auction results to be annulled in light of “serious procedural defects”, which contravene the Telecommunications Act.
H3G also contends frequencies, which operators had already acquired the rights to until 2019, were re-sold at the recent auction, creating “legal uncertainties”.
An H3G spokesperson said the company will lodge its appeals as soon as possible this week. He however noted that the appeals will not affect its 4G rollout, using its 1800 MHz spectrum and wait for other frequencies to be refarmed.
T-Mobile Austria CEO Andreas Bierwirth called for a new tender process at a press briefing on Monday, arguing that fundamental flaws in the recent auction had led to excessively high prices. The company, which paid €654m (US$883.7m) for spectrum, intends to appeal to the two courts.
A spokesperson for incumbent Telekom Austria, which paid €1.03bn (US$1.4bn) for frequencies, said the company would not decide before December whether or not to appeal against the auction. Yesterday, TA launched a €750m (US$1.02bn) bond to help finance its newly-acquired spectrum.
