Friday, 10 April 2009

Tommy Telecom loses court case to KPN – The Netherlands

KPN has won the legal battle against Tommy Telecom, a rapidly growing MVNO in the Netherlands, over defective services. The court has ruled its judgement in favour of KPN and going forward the company will discontinue its services (provided via an MVNE, Aspider) to the MVNO’s subscribers.

Tommy Telecom has been ordered to pay all of the court’s expenses along with any outstanding bills. As a result, Tommy Telecom will have to shell out around EUR 114,695 (USD 151,924) together with a bank guarantee for a further EUR 200,000 (USD 264,918). Additionally, by 26 April, bank guarantee is required to be raised to EUR 389,604 (USD 516,066), under penalty of further fines.

As mentioned in our previous issue, Tommy Telecom had dragged KPN to court over defective services. Additionally, KPN had threatened to shut down its services to Tommy Telecom over the latter’s move to leave KPN. Tommy Telecom is understood to have moved to T-Mobile Netherland’s network via a Wholesale Line Rental (WLR) agreement with MVNE Elephant Talk.

According to KPN, the company had payment problems with Tommy Telecom. Tommy Telecom had denied such allegations and said that it had paid all bills to KPN. However, the dispute over costs of EUR 400,000 (USD 529,836) for HLR services still remained.