The decision of the Administrative District Court, which satisfied the claim of Latvijas mobilais telefons (LMT) against the Public Utilities Commission in the dispute over the easing of conditions for the use of the radio frequency spectrum for Telekom Baltija, is an important precedent in the regulation of the industry, said the head of the public relations department of LMT, Valdis Jalinskis, to the LETA agency.
He also noted that this decision confirms the need to ensure an open and fair procedure for the allocation of radio frequencies.
According to Jalinskis, this issue is not only technical — it significantly affects the interests of market participants and the competitive environment, which in the long term impacts both business and end users.
Despite the objections of the Public Utilities Commission, the court recognized that decisions regarding the allocation and extension of rights to use limited state resources are subject to judicial review. Jalinskis stated that by extending the use of radio frequencies for a company that had not used them for more than five years, the Public Utilities Commission violated the principle of equality and did not conduct a comprehensive assessment of the market situation, the opinions of stakeholders, and the provisions of the Electronic Communications Law.
It was previously reported that the Administrative District Court ruled to satisfy the application of LMT, which means the annulment of the decision of the Public Utilities Commission dated December 5, 2024, "On special conditions for the use of the limited radio frequency range for Telekom Baltija" from the moment of its adoption, as well as the annulment of the commission's decision dated December 12, 2024, which approved the report on the possibility of extending the use of radio frequency ranges, from the moment of its adoption.
The court also ruled that the Public Utilities Commission must make a new decision regarding the further use of rights in the 450 megahertz (MHz) range within two months.
The decision of the Administrative District Court can be appealed to the Administrative Department of the Supreme Court within one month from the date of its drafting.
The Director of the Department of Electronic Communications and Postal Services of the Public Utilities Commission, Ivars Tauniņš, previously explained to the LETA agency that on December 5, 2024, the commission's council made a decision on special conditions for the use of the radio frequency range for Telekom Baltija, establishing new specific conditions for the 450 MHz range while simultaneously canceling the previously existing ones.
And on December 12, 2024, the council of the Public Utilities Commission reviewed and approved the report on the possibility of extending the use of radio frequency ranges, including in the ranges of 453-457.5 MHz and 463-467.5 MHz. According to this report, the Public Utilities Commission conducted public consultations to study the opinions of stakeholders regarding the extension of rights to use these ranges by Telekom Baltija, which expire on December 22, 2026.
Tauniņš explained that until 2019, Telekom Baltija used the 450 MHz range for code division multiple access (CDMA) systems, but after that, the actual provision of electronic communications services in this range was discontinued. The company explained this by transitioning from outdated technology to new, which can be a lengthy process and requires significant financial investments.
LMT emphasized that the decision of the Public Utilities Commission provided for a significant easing of the conditions for the use of the 450 MHz radio frequency spectrum for Telekom Baltija, as well as an extension of rights to use certain ranges for another ten years, despite the fact that the company had not complied with the conditions for using the frequencies granted to it for five years. Therefore, the enterprise demanded in court to annul these decisions.
According to LMT, the main goal of the lawsuit was to prevent a situation where the decision of the Public Utilities Commission would violate competition and not ensure equality of rights and obligations for all market participants in the use of an important state resource — radio frequencies.
Commenting on the decision of the Administrative District Court, the executive director of the Public Utilities Commission, Janis Mikelsons, told the LETA agency that further actions of the Public Utilities Commission will be determined after a complete review of the court's decision.
He noted that the Public Utilities Commission received the decision of the Administrative District Court on October 8, 2025, in the afternoon, and it still needs to be fully reviewed by the lawyers of the Public Utilities Commission.
The LMT group operated last year with a turnover of 308.608 million euros, which is 0.5% less than in 2023, but the company's profit increased by 6.1% to 34.038 million euros.
49% of the company's capital belongs to the Swedish Telia Company and its subsidiary Sonera Holding, 23% of the shares belong to Tet LLC and the Latvian State Radio and Television Centre (LVRTC), and 5% belongs to the State Asset Manager Possessor LLC.
It was also reported that Telia signed a memorandum of understanding with Latvia, Latvenergo, and LVRTC regarding the sale of all its shares in Tet and LMT. The parties plan to sign a final agreement by the end of 2025, with the completion of the deal expected in the first half of 2026.
