Czech Telefonica O2 to award main rival massive payout

The biggest telecoms company in the Czech Republic, Telefonica O2, said on Monday that it would pay its main local rival, T-Mobile 2 billion CZK (127.3 million USD) claimed in unpaid phone bills. T-Mobile says it is owed the sum because Telefonica O2 and its predecessor paid insufficient connection charges dating back to 1997. Telefonica O2 said that it would make the payment because property worth more than the contested sum had been frozen as a result of a legal order taken out at T-Mobile’s request in the bitter battle between the companies. But it says it will fight on. Telefonica O2 said it would launch a legal challenge to existing Czech law covering the seizure of assets because loopholes had been exploited by its rival. Telefonica O2’s combined fixed and mobile phone businesses make it the biggest telecoms operator on the Czech market, closely followed by T-Mobile.