Vodafone gets Turkey’s Telsim — MobileMonday Global: Industry News

^{Motorola and Nokia cash in} Vodafone gets Turkey’s Telsim

15 Dec 2005 at 20:30 GMT Timo Poropudas

Vodafone, the world’s biggest mobile phone service provider by revenue, snapped up Turkey’s second-largest mobile operator Telsim for USD 4.55 billion in a keenly-fought contest on Tuesday. Many parts of Western Europe have nearly 100 percent mobile market penetration rates; only 53 percent of Turkey’s 72 million people use mobile phones, giving Vodafone access to a large, growing market on the borders of Europe. Telsim has about 9 million customer. The deal is good news to Nokia and Motorola, which stand to gain 7.5 and 20 percent, respectively, from the deal. Nokia will receive the settlement payment upon completion of the sale and it is expected to be received during the first two months of 2006. “We are extremely pleased with this positive outcome and a satisfactory resolution of our claim against Telsim,” says Rick Simonson, CFO, Nokia. “TMSF has done a tremendous job in carrying out the auction in an effective and successful fashion, and for that hard work we’re grateful. We are also happy to congratulate Vodafone on its successful bid. Vodafone will be helping to shape the future landscape of communications in Turkey.” Nokia’s claims in this matter 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.