Feeds

Nokia Siemens vs Vodafone Oz: the legal games begin

Missing millions and contractual woes

Security for virtualized datacentres

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. ®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.