Flat-rate service fee

Mobile phone providers complain of “legal uncertainty”

According to the providers, the potential repayments of "500 million to one billion euros" are problematic.

(Bild: stock.adobe.com/Steidi - stock.adobe.com)

The three major providers Magenta, Drei and A1 are complaining of "legal uncertainty" in the legal dispute over mobile service fees. In particular, the threat of repayment of flat rates already collected would jeopardize future investments, the heads of the companies declared on Thursday.

They received backing from Klaus Steinmaurer, Managing Director of the Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR). RTR had approved the service fees prior to their introduction and on an ongoing basis in the following years. According to Steinmaurer, there had been discussions with RTR, the AK, the Association for Consumer Information and other stakeholders in the run-up to the introduction in 2011. In a press release issued by RTR at the time, it was stated that the annual base fees were "unpleasant" but legally permissible. "Then nothing happened for twelve years" and only a ruling by the Supreme Court, which overturned a similar levy on fitness centers, drew attention to this, Steinmaurer summarized. "Gyms are not a regulated industry, we are. You can't compare the two," said Magenta CEO Rodrigo Diehl.

Providers warn of "economic effect"
The decision that service fees of this kind will no longer be legally compliant in future is "legitimate". The potential repayments of "500 million to one billion euros" are problematic. Furthermore, it is unclear for how many years the providers would have to pay back in the event of a guilty verdict. This would have a major impact on the investment decisions of international parent companies in the mobile communications sector, as Austria would become less attractive. "It is important that the courts look at the economic effect," explained Steinmaurer.

Verdict not before 2026 according to Drei boss
Rudolf Schrefl, CEO of Drei Austria, does not expect a ruling in this case "before 2026", i.e. not in the near future. In other areas, the company bosses were satisfied with the past and the status quo. Austria's 5G network is one of the most powerful in Europe and, according to Diehl, achieves network coverage of 95% of all households. Furthermore, in July 2024, mobile telephony was listed among the "price dampers" by Statistics Austria with a drop of 11.7% compared to July 2023.