Motorola continues pursuit of lost Telsim billions

9 Aug 2005

Motorola has confirmed that it will act on a USD2.5 billion arbitration award against wireless network operator Telsim. The announcement follows rulings last week by British and US courts which froze Telsim’s international roaming and interconnect revenues in those two countries. The revenues will then be passed to Motorola. To date Motorola has collected only a few million from Telsim’s former owners, the Uzan family. Its not yet clear exactly how much the equipment vendor can expect to recoup from Telsim via annexation of roaming revenues, although analysts say the figure is unlikely to be more than USD100 million per annum; at that rate it would take until 2030 for the debt to be paid in full.

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