ESPOO, Finland-Nokia Corp. reached a settlement with Turkish operator Telsim Mobil Telekomunikasyon, whereby Nokia will receive a payment after the sale of Telsim’s assets. Nokia said the settlement is subject to the formal board approval of the Turkish Savings and Deposit Insurance Fund, which currently controls and manages Telsim’s assets.
Nokia said it sees the settlement as a positive step in resolving its longstanding legal issues with Telsim. Moreover, Nokia said, the agreement opens the way for the continued support for Telsim’s operations that will benefit Telsim’s subscribers, the Turkish government, and the overall Turkish telecommunications market.
Nokia’s claims arose from Telsim’s default on its repayment obligations under a loan facility related to network equipment delivered in 2000. In February 2004, the Arbitral Tribunal in Zurich fully approved the claim against the Turkish company.
In early July, Motorola Inc., which also had sued the carrier for not making loan payments, scored agreements to freeze international roaming payments to Telsim. Motorola said the carrier owed it $2.5 billion, a claim backed by international courts.
Motorola loaned Telsim $2 billion to help the carrier build its network. Motorola said the carrier counts 8 million subscribers but has not paid back the loan, now worth $2.5 billion.
