An attempt by British mobile phone operators to claim tax rebates worth ?3.35bn ($5.97bn) for 3G licences that were bought at the height of the telecommunications boom has been referred to the European Court of Justice in Luxembourg.

The move is likely to make the UK a precedent-setting case for European operators seeking tax rebates on 3G licences. Billions of euros are potentially at stake because European mobile operators spent about ?100bn ($123bn) on the licences. If the companies win, it would mean prices paid for 3G licences in the auctions included VAT, and operators could therefore be entitled to claim back this money from governments.