End of dispute, TP SA to pay DPTG €550m

2012-01-30



TP SA and representatives of Danish Polish Telecommunications Group (DPTG) reached a settlement, thereby finishing a dispute that lasted over two decades. In the framework of the agreement, TP SA will repay Danish telecom an amount of €550m.
The conflict pertained to a contract signed in 1991 between TP SA’s predecessor, state company Poczta Polska, Telegraf i Telefon and DPTG for the joint construction of a 1,500 km fibre-optic line linking North and South Poland.
The dispute arose around 14.8% profit from the investment for the period of 15 years. Due to a calculation divergence, in 2001, the case was turned in to the arbitration court in Vienna, which ten years later favored the claim and ordered TP SA to pay up DPTG the amount of nearly €400m. In the meantime, Danish telecom filed a claim for another €320m. In December 2010, TP SA appealed the Vienna decision at the trade court in Austria, however, the appeal was rejected in November 2011. Thus, TP SA decided to agree to a settlement.