Danish Polish Telecommunication Group I/S v. Telekomunikacja Polska S.A.

The Situation

In 1994 Danish Polish Telecommunication Group (DPTG) entered into a joint venture with Telekomunikacja Polska S.A. (TPSA) to finance the construction of a new telecommunications backbone in Poland (the NSL). The parties agreed on the basis for sharing the revenues generated by the NSL between 1994 and 2009. However, in 2001 DPTG initiated an UNCITRAL arbitration proceeding against TPSA in a dispute over the determination of traffic volumes carried, claiming that it had not received the 14.8% of net revenues to which it was entitled.

NERA's Role

DPTG retained NERA Special Consultant Nigel Attenborough as an Expert Witness to estimate the damages suffered by DPTG as a result of TPSA's actions. This involved estimating the flows of telecommunications traffic between different areas in Poland, determining the extent to which they use the NSL and hence determining DPTG's share of the resulting net profits.

The Result

DPTG reached a settlement with TPSA and received payment of €550m ($709m) to end 10 years of arbitration. The settlement covers the period 1994-2009, and follows a Partial Award of damages to DPTG in September 2010 of €389m ($499m) for the period 1994-2004.