Feeds

Nokia Siemens vs Vodafone Oz: the legal games begin

Missing millions and contractual woes

Remote control for virtualized desktops

Nokia Siemens Networks is taking legal action against customer Vodafone Australia following a tussle over compensation issues regarding network performance.

The "Vodafail" network woes that have dogged Vodafone Australia and its disgruntled customers appear to have been passed on to network supplier Nokia Siemens Networks in a messy legal wrangle.

In April 2010, the parties signed a seven year managed services agreement; within six months consumers had begun complaining of widespread network performance issues. Vodafone is now facing a class action from thousands of customers, and has become the Telecommunications Industry Ombudsman’s poster child of how not to handle network performance issues.

According to the Sydney Morning Herald, the latest legal action instigated by Nokia Siemens Networks, in early November, Vodafone Australia withdrew $AU8 million from a Performance Bond which was part of a Managed Services Agreement between the carrier and the vendor. At the time both parties were involved in mediation over performance issues.

Vodafone also demanded that Nokia Siemens Networks place a further $AU8 million into the combined account.

According to documents filed in the NSW Federal Court by Nokia Siemens Networks, the vendor has sought legal action to stop Vodafone from asking for more money to be placed in the Performance Bond and seeking that until December 9, Vodafone will cease attempting to extract or demand any money due under the MSA.

Nokia Siemens Networks described Vodafone’s actions as “misleading, deceptive and unconscionable” by withdrawing a bond the subject of mediation ... in circumstances in which there was no entitlement to demand payment by reason of the want of any liability", and by requesting more money.

Nokia Siemens Network has also sought that Vodafone ensures that the combined credit account balance for all bank accounts operated by it will not drop below $AU10 million.

In a hearing on November 4, Justice David Yates granted that Nokia Siemens Networks not be required to top up the performance bond and that Vodafone maintain $AU10 million in its joint bank account until the matter is heard on December 7. That hearing will be before Justice Robertson. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.