Motorola Seeks Enforcement via Telsim's International Roaming

Motorola is seeking to collect the international roaming and interconnect revenues of Telsim Mobil Telekomunikasyon (Telsim), the second largest mobile operator in Turkey, as a means of enforcing its approximately $2.5 billion arbitration claim against the company.


On June 13, 2005, a panel of arbitrators from the Zurich Chamber of Commerce issued a final award ("the Final Award") in the arbitration pending between Telsim and Motorola Credit Corporation ("MCC") concerning the amounts due by Telsim to MCC under the financing arrangements between the parties. Telsim had borrowed nearly $2.0 billion from Motorola for the financing of a Motorola-constructed cellular telephone system and has failed to pay Motorola despite the system's operational success.


Telsim has refused to pay Motorola. This week, courts in the United States and the United Kingdom granted Motorola's request to attach the international roaming and interconnect revenues Telsim has earned in those countries. As the result of the decisions from the U.S. and U.K. courts, Motorola will be able to attach and/or freeze the monies other carriers would have otherwise paid to Telsim for international roaming and interconnect services.


Motorola said that because its claim is not against the other carriers, this order will not effect international roaming and interconnect services.


Motorola also said that it will continue to aggressively seek enforcement of the judgment for $2.13 billion rendered on behalf of Motorola against the Uzan family of Turkey for perpetrating the massive fraud against Motorola relating to the Telsim loans.
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