Business

Rain (AM and PM) 16° London Hi 18°C / Lo 11°C

T-Mobile ordered to stop blocking WiFi rival's calls

By Karen Attwood
Tuesday, 17 July 2007

The fledgling WiFi phone company Truphone has won the first round of its battle against mobile phone giant T-Mobile.

Truphone, which was launched last September, has accused T-Mobile of abusing its position of market dominance by hindering its service and blocking calls made to numbers owned by the company.

The High Court in London granted an interim injunction yesterday, forcing the German company to put calls made to Truphone numbers through.

Truphone allows customers to download free software on to their mobile phones that will enable them to make cheaper, or even free calls, by using a WiFi network. It routes calls via WiFi when handsets are within range of wireless hotspots the phone can connect to. James Tagg, the chief executive, said the court's decision was important "as it means the existing mobile phone operators cannot use their market power to stop new entrants".

Other mobile phone operators have agreed to connect Truphone's calls, he added.

Mr Tagg said T-Mobile initially said it was "a matter of policy" for the company not to route its calls. According to court papers, T-Mobile offered Truphone a deal to connect its calls, but this had been rejected.

The case is expected to continue in the autumn. A spokesman for T-Mobile said the company could not comment on any ongoing litigation.

Analysts said mobile phone operators tend to be reluctant to provide services which could affect their own products.

Interesting? Click here to explore further