TELECOMMUNICATIONS: GERMANY NOT FRANCE TELECOM'S PROMISED LAND.
MobilCom spokesman Matthias Quaritsch has indicated that it is "highly likely" that the German operator will publish details of the agreement signed two years ago with France T?l?com specifying the French group's financial obligations towards the German operator. Mr Quaritsch indicated: "France T?l?com claims its obligations are very limited. We claim the contrary. It might therefore be appropriate to publish details of our agreement so that the truth can come out". Opposed to what it regards as excessive investments proposed by MobilCom Chairman Gerhard Schmid in UMTS mobile telephony, France T?l?com claims that financial support promised to MobilCom for 2000 is subject to its approval of its business plan. Mr Schmid rejects this argument. France T?l?com has been threatening since February 21 to go to court if MobilCom persists in denying it access to its projects. It has also commissioned an independent audit on the conditions of Mr Schmid's Wife's recent acquisition of MobilCom capital. The French group suspects the deal might not be crystal clear.Michel Bon's group has declined to comment on MobilCom's threats. MobilCom's move is a risky one: if the German group is correct in its understanding of France T?l?com's commitments, the latter might pursue court action over the publication of secret agreements; if it is mistaken, MobilCom will be hard pressed without the support of its French shareholder to secure backing from banks to reschedule the...
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