Mobile operators make European move

Mobile operators One2One and BT's mmO2 are to take the UK government to the European Court in the ongoing row over the 3G bidding process.

The two operators have confirmed that they are planning to appeal to the European Court of Justice over the UK Government's decision to grant rivals Vodafone and Orange extra time to pay for their third-generation (3G) mobile licences.

Vodafone and Orange were given an extra 180 days to pay over the other bidders, to allow Vodafone to de-merge Orange, which it acquired as part of its take-over of Mannesmann of Germany.

During this time, One2One and mmO2 claim, its rivals accrued around £80m in interest, which they consider an unfair advantage.

In September this year, the High Court in London threw out the operators' cases, leaving, One2One said, the firm no choice but to bypass the House of Lords and go straight to Europe.

"[The auction] should have been a level playing field, but it wasn't," said Harris Jones, managing director of One2One.

A company spokesman confirmed today that a case was being developed further and would be ready to present to the European Court of Justice within the next few weeks.

He added that One2One would be seeking an amount equal to the interest the company would have amassed during the same 180-day period from the Government, around £85m in its case. One2One paid £4bn for the right to operate 3G licences in the UK, but its network will not be up and running until 2003 at the earliest.

mmO2, the BT spin-off, is also considering a bid. "We're currently keeping our options open. We could petition the House of Lords or, more likely, go straight to Europe," said press officer, Simon Gordon.

"We'll shortly be announcing a decision."