BT loses auction payments action

BT and One2One failed yesterday in a high court claim that they were treated unfairly in comparison with two rivals as a result of which they lost millions of pounds.

They alleged that the timetable the government set for payment of sums due from winners of third-generation mobile phone licences gave an unfair advantage - amounting to unlawful state aid - to Vodafone and Orange.

Trade secretary Stephen Byers allowed Vodafone and Orange extra time to pay because, under auction rules, they were forced to break the relationship brought about by Vodafone's takeover of Mannesmann - which included Orange. The split, necessary to ensure that no single operator had more than one licence, was completed in August and the now-separated companies paid on September 1 - Vodafone paying almost £6bn and Orange £4bn.

BT subsidiary BT3G and One2One, which had to settle their £4bn bids in May, complained that the extra time saved their rivals £1m per working day each because their money was still earned interest. They contended that they each effectively lost £80m in interest.

Mr Justice Silber said the benefit to Vodafone and Orange did not amount to state aid. BT3G and One2One were given leave to appeal.
PA News