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T-HT Does Not Acknowledge the Lawsuit of the City of Zagreb

T-Hrvatski Telekom has reported to the Zagreb Stock Exchange today that a lawsuit has been filed against the Company by the City of Zagreb, which claims to be the owner of the distribution telecommunications conduit system (DTK) in the area of the City of Zagreb and is seeking compensation of 120 million kuna (16.9 million euros) with applicable interest.

T-Hrvatski Telekom will vigorously oppose all these claims and believes that this lawsuit is unfounded, as the majority of the distribution telecommunications conduit in the area of the City of Zagreb was built by T-HT, not the City of Zagreb. Furthermore, the lawsuit from the City of Zagreb is even more unfounded following the adoption and entry into force of the Electronic Communications Act in July 2008, which resolved the issue of the use of the DTK system and its leasing to third parties, as stated in the announcement.

This law introduced the legal institute of the right of way, ensuring that the operator who built the DTK system has the right to use it and lease it to third parties. According to the law, the landowner is obliged to refrain from taking any actions that could conflict with the rights of the operator. Therefore, T-HT, as the operator that built the majority of the DTK in the City of Zagreb, has rights to use and other rights related to the DTK. The City of Zagreb, as the landowner, only has the right to receive compensation for the use of the land, but not for the use of the DTK system itself. According to the law, the amount of this compensation is prescribed by the national regulatory authority. Therefore, T-HT rejects this lawsuit as unfounded, it is concluded in the announcement.