The January memorandum of understanding between Northern Telecom Ltd and Daimler-Benz Aerospace AG (CI No 2,578) has matured into full agreement for the creation of Nortel Dasa Network Systems GmbH & Co KG, and the new company has won its first contract in Germany. It says it is talking to all the proposed new telecommunications companies in Germany that hope to compete with Deutsche Telekom AG. The joint venture is looking for some $700m annual sales within five years. It is not forecasting when it will break even, but believes it will be soon. The new Nortel Dasa Network Systems will be held equally by the two partners; it is initially capitalised at $28m and starts life with 620 employees. It will target Eastern Europe as well as Germany.
