BT share drop over 3G ruling
Vodafone wins but still hits 12-month low
BT's share price has dropped 6.2 per cent on the news that its high court case against Vodafone and Orange has collapsed. BT and One2One alleged the two mobile companies had an unfair advantage - equivalent to state aid - when they were given longer to pay instalments on their 3G licence.
The reason behind the extended payment timetable was Vodafone's purchase of Mannesmann, which necessitated the sell-off of Orange to France Telecom. Mr Justice Silber was having none of it and BT's share price slid.
Not that the decision helped Vodafone. Its decision to pay £2.9 billion for Irish mobile phone group Eircell saw its share price fall a 4.4 per cent and hit a year-low. Oh dear.
This whole 3G thing is more trouble than its worth if you ask us. ®