Orange on the warpath

The Warsaw Prosecutor has launched an investigation into the rebranding of PTK Centertel's Idea to Orange.

The move came after Krzysztof Tchórzewski, deputy chairman of Law and Justice's (PiS) parliamentary club, sent a letter to Zbigniew Ziobro, the Minister of Justice, claiming that the board acted to the detriment of the company. According to PiS deputies, the deal was an excuse to transfer Idea's profits abroad and decrease the company's revenues and the state budget's income.

In a report last year by the Adam Smith Center, the economic think tank estimated the cost of the rebranding at $1 (zł.3.24) billion, which it said was high compared to the prospective profits.

The board of PTK Centertel denies the allegations and says all the company's actions were legal and transparent. "The board is positive that the legal measures taken by the prosecutor will fully explain the claims included in the so-called 'report' by the Adam Smith Center concerning the Orange rebranding process. Since September 19, 2005, the number of Orange users has increased by 2.5 million. The success only proves the pertinence of the decision," says Jacek Kalinowski, a spokesperson for PTK Centertel.

PTK Centertel has sued the Adam Smith Center and Andrzej J. Piotrowski, the author of the report. The company is demanding an apology for publishing what it says is untrue and unreliable information about the company. PTK Centertel, which was the first Polish mobile-phone operator, is calling for zł.100,000 to be paid in compensation and a ban on the further dissemination of the publication. It says the compensation will be donated to Instytut Pomnik - Centrum Zdrowia Dziecka (the Center for Children's Health) in Warsaw.