Virgin files case against T-Mobile



The two mobile phone partners are back in court, in a situation described by Virgin as 'incapable of remedy'
Entrepreneur Richard Branson's Virgin Group has started legal proceedings against Germany's T-Mobile, accusing it of "material breaches" of their mobile joint venture agreement, The Observer has reported.

The two companies are equal partners in Virgin Mobile, the country's fifth largest mobile operator. All Virgin Mobile calls in the UK are carried on T-Mobile's network.

The case, filed in the UK High Court, represented a new low in relations between the two sides, the paper said, adding that it raised questions over the Deutsche Telekom unit's future involvement in Virgin Mobile.

"The claimants [Virgin] are entitled to serve on T-Mobile a Compulsory Sale Notice requiring T-Mobile to offer to sell their shares in Virgin Mobile Telecoms Limited," The Observer quoted from a Virgin claim filed in the high court.

A Virgin spokesman declined to comment on the report.

A source close to the group confirmed, however, that Virgin had filed a legal case against T-Mobile, but this was after the German firm first moved to end the venture.

The Virgin claim said the situation between the two sides was "incapable of remedy", the newspaper added.

Last week, the High Court, ruled in Virgin's favour in a case filed by T-Mobile, saying that T-Mobile had "made a calculated decision to seek to use the termination provision of the joint venture... to secure commercial advantages."