PARIS-France Telecom and MobilCom will terminate their agreements concerning UMTS development in Germany.
France Telecom and MobilCom have agreed to follow the MobilCom rescue plan set forth by the German Federal government Sept. 15. The plan calls for both a financial rescue plan for MobilCom’s traditional businesses as a GSM service, fixed-line telephony and Internet provider and a freeze-down plan for its UMTS business, with France Telecom’s participation.
In order for the agreement to be finalized, there must be an agreement between France Telecom and the banking syndicate as well as agreements with Nokia and Ericsson on the purchase of their loans; approval from MobilCom shareholders; and approval by France Telecom shareholders.
