MILAN (WiMAX Day). The Italian company MGM Productions srl has lodged an appeal against the rules for the auction of 3.5 GHz spectrum in Italy. The case is to be heard in the higher civil court, Tribunale Amministrativo Regionale, on November 22, 2007. MGM claims that the auction rules favour the large incumbent telecoms.

According to Stefano Quintarelli, President of Eximia Srl, if the court rules in favour of MGM, the Ministry of Communications might be forced to withdraw the WiMAX tender until the issue is resolved. However sources close to the Ministry say that the Ministry does not intend to make any changes to the auction rules, and does not expect any decision from the court that would adversely effect the auction from proceeding as planned.

MGM won a license for WiMAX spectrum in Germany in December 2006, and is expected to bid for licenses in Italy.