TDE.L Regulatory News (TDE)

11 Jun 2007 14:32

Telefonica O2 Czech Republic, A.S.11 June 2007 Standpoint to Commentaries of Media concerning Dispute with T-Mobile As officially communicated in the past, Telefonica O2 Czech Republic, a.s.engages, as from 2001, in a dispute with T-Mobile Czech Republic a.s.concerning the amount of mutual payments of interconnection fees in the periodfrom 1 January till 26 November 2001. The disputed amount is CZK 898.6 Millionplus accessory. The decision of the Czech Telecommunications Office of 2003,providing for the respective payment, was challenged by us in the beginning ofyear 2004 through an action brought before the courts. Subsequently, also theenforceability of the decision of the Czech Telecommunications Office wassuspended. The present situation arose because the courts are solving the issue of theirsubject-matter competence to deal with the case. This has also resulted in theexpiration of the original suspension of enforceability. T-Mobile Czech Republica.s. tried to use this situation to enforce the concerned decision and commencedenforcement proceedings against Telefonica O2 Czech Republic, a.s. by filing anappropriate action. On 31 May 2007, the court nevertheless again granted asuspension of the decision of the Czech Telecommunications Office. In follow-upto this suspension, Telefonica O2 Czech Republic, a.s. now seeks the terminationof the respective enforcement proceedings. In this connection, Telefonica O2 Czech Republic, a.s. points out that thecourts did not render a final decision on the merits of the pending dispute sofar. The entire matter is not directly affecting ordinary business activities ofTelefonica O2 Czech Republic, a.s. The whole disputed amount including relatedaccessory has been fully provisioned in the books on a long-term basis. This information is provided by RNS The company news service from the London Stock Exchange