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New T&T adds to fee row with HKT

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New T&T is countersuing rival Hongkong Telecom for withholding payment of delivery fees in the latest round of hostilities between two of Hong Kong's biggest competitors.

On Thursday, Telecom announced that it was suing its two biggest rivals for $426.5 million and holding back $105.5 million in payments to the companies, It alleges they wrongly profited from a re-routing of incoming international calls.

The company said that it had filed High Court writs against New World Telephone and Wharf's New T&T, in an action that sought 'restitution of improperly' diverted fees.

Yesterday, New T&T announced Hongkong Telecom, or HKT, action had left it with no option other than to sue for the recovery of delivery fees which it claims were without doubt due to it and of which Telecom was wrongly withholding payment.

New T&T said that it had been pressing Telecom to meet its financial commitments under delivery fee arrangements, and added it was extraordinary that they had chosen to issue the writ.

'[We] cannot see any legitimate basis for HKT's claim, and the company will vigorously resist it,' NTT said, adding 'the matter is now in the hands of our lawyers'.

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