Motorola and Nokia up heat in Telsim case

Vendor financing? What were they thinking?

By Tony Hallett, 31 May 2002 08:15

NEWS The stand off between Motorola and Nokia and the family behind a Turkish mobile network operator has intensified with the equipment companies starting contempt proceedings. Motorola and Nokia are suing the Uzans - for around $2bn and $700m respectively - after operator Telsim defaulted on a vendor financing agreement last year. Vendor financing was a popular way for providers to help operators buy equipment by lending money for specific purchases. The infrastructure players claim the Uzan family tried to defraud them by siphoning off funds, though this is denied. A US judge has ruled for shares in Telsim to be removed from Turkey but Turkish courts have passed conflicting judgements.

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