T-Mobile faces a US$ 1.25 billion lawsuit claimed by VIP Communications (UK)UK’s T-Mobile faces a US$ 1.25 billion (£625 million) latent lawsuit for damages from a former reseller of SIM cards, VIP Communications. According to VIP Communications, the claim is based on the report prepared by T-Mobile internal staff to calculate the economic impact of VIP Communications’ business model valued at some £57 million per year.According to Mobile News, UK trade magazine, T-Mobile has not recieved a legal claim and dismissed the actions.
VIP Communications, a telecom reseller, until 2004 offered GSM Gateway products, these are routers which the direct office landline calls to mobile calls via GSM SIM card, which otherwise is costlier than network mobile to mobile calls. The business model is that a GSM Gateway would lower an office call costs. On the other hand, operators have been arguing that GSM Gateways create an abnormal concentration of outbound mobile call traffic in a specific area and disrupt their networks.
VIP Communications, in order to overturn the descision to block it from selling T-Mobile SIM cards for use in the GSM Gateways,is engaged in further legal action in the UK’s High Court of Appeal. VIP’s win will open a flood of litigations from the previous resellers who were all prohibited from selling the SIM cards around the same time.
