23 December 2004

Mobile phone service provider 3 UK may take legal action against the British government to recover some of the 1 billion pounds spent on the launch of its 3G generation network, says the UK Times newspaper

The paper said the company spent the money on ensuring its new 3G mobile network covered 80 percent of the UK population to comply with strict standards laid down by Britain's telecoms and media watchdog, Ofcom.

The company, controlled by Hong Kong's Hutchison Whampoa , has been told it has a strong case for compensation, the Times said.

However, the Times said Ofcom is poised to relax or abandon its 80 percent rule. Such a move would benefit some of 3's smaller rivals who are nowhere near the target, the paper said.