TP SA fined PLN 1.6bn

2010-09-10

A Vienna-based arbitration court fined TP SA around PLN 1.6bn (€405m) in a dispute about traffic volume over a fibre-optic network in Poland built by the Danish Polish Telecommunications Group (DPTG) in 1991-1993 for the legal predecessor of TP SA. The ruling concerns fees between 1994 and 2004. The Danish company plans to lodge another claim, for the period from mid-2004 to 2009. According to a preliminary estimate, DPTG may demand as much as PLN 0.5bn (€127m) plus interest.
The dispute, which arose in 2001, concerns the contract concluded by TP SA and DPTG in 1991. In accordance with the agreement, DPTG was entitled to 14.8% of net profit from the network between February 1994 and January 2009. In 1999, however, the companies were unable to reach an agreement regarding the calculation of the revenues and therefore, in 2001, DTPG filed the proceeding against TP SA.