Last week the UK’s High Court rejected an application by cellular operator EE (which was acquired by BT in 2016) for an interim injunction against London-based speciality satellite operator Avanti Communications. The application concerned Avanti’s alleged threat to withdraw its satellite links for EE, unless EE agreed to a “substantially increased fee rate” for its satellite links. Avanti has a customer prepared to pay a much higher rate for the capacity.

The links provided by Avanti connect voice and data capacity to some of the UK’s most remote sites and where EE does not have fibre-optic links. Some 200 sites do not have anything other than Avanti’s satellite services for EE’s normal ‘backhaul’ connections. There are a further 400 sites where Avanti supplies a back-up in case the fibre or microwave connections fail. Avanti uses its HYLAS satellites for these services.

According to court documents, the two sides have been arguing “since early this year” after Avanti “threatened to withdraw its services on a phased basis unless EE agrees to pay for those services at a substantially increased rate which EE contends is exorbitant and unreasonable“.

A contract between the two was in place until December 2023 and the pair have disagreed as to the follow-on service.

The High Court ruling stated: “The present position is that Avanti has been prepared to continue to provide its services pending the making and outcome of this application. Further, it has made an open offer to EE to continue providing them for a further 3 months but no longer and at the higher rate which it seeks. It contends that it could in any event not supply the services beyond 3 months because this would risk it losing a very lucrative contract for the supply of satellite services to a new customer.”

The High Court statement continued: “For its part, EE would be prepared to pay Avanti a pro-tem fee of £300,000 per month but it would need Avanti to maintain the services for longer than 3 months and ideally for 6-9 months. This is because while EE recognises that it cannot continue to take services from Avanti on a long-term basis at the rate required by Avanti and has indeed started to engage with a different satellite supplier to take over from Avanti, this process of “migration” is a protracted one if it is to be done properly.”

The Court added: “Since the parties have been unable to agree a way forward after which they would effectively part company, EE has brought this application for an injunction, effectively to maintain Avanti services until the migration is complete or trial, whichever comes first. As to the underlying merits of EE’s claim, Avanti disputes that it is presently under any continuing contractual obligation to supply the services. Strictly speaking, it says, it would be entitled to walk away now. In fact, and as noted above, it has never suggested that but instead and in order to facilitate an orderly migration, has intimated that the withdrawal of services would be on a phased basis.”

The Judge, Mr Justice Waksman, “dismissed” EE/BT’s application for injunctive relief against Avanti. “I consider that the interpretation of the [Supply Agreement, and Statement of Work] contended for by EE is plainly wrong and does not give rise to a serious issue to be tried.”

EE is understood to have considered using Eutelsat’s OneWeb fleet for its backhaul services.

Avanti, in a statement, said it welcomed the court’s decision and remained open to constructive dialogue with EE.

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Tags: avanti, bt, EE