Telekom Kosovo suffers another arbitration defeat against Dardafon

Telekom Kosovo suffers another arbitration defeat against Dardafon

Telekom Kosovo (TK) has hit another setback in its long-running spat with Dardafon with the loss of another arbitration case.

State-owned TK, which operates as Vala, terminated its MVNO contract with Dardafon in 2019 and has now been ordered to pay roughly EUR13 million (US$14.7 million) in damages to its former partner by the London-based International Chamber of Commerce (ICC), reports Balkan Insight.

As noted by TeleGeography, the ruling follows several previous court defeats for TK. The companies first signed their MVNO agreement in 2008, and while Dardafon launched services branded as Z Mobile in 2010, the partnership faltered after TK refused to allow Dardafon to offer 3G or 4G services via its network.

The companies took the dispute to court, with the ICC ruling in Dardafon’s favour in 2016 and ordering TK to pay EUR39 million in damages. This led to allegations of corruption and mismanagement as the agreement came under fire.

When the deal came up for renewal in 2019, TK declined as Dardafone pushed to collect its dues from its partner. Indeed, the latest ruling reportedly relates to TK’s refusal to renegotiate the contract in good faith after it last expired.

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