Racal Telecom Plc has chosen L M Ericsson Telefon AB to replace Plessey Co as its joint venture partner in the Orbitel Mobile Communications Ltd cellular telephone equipment joint venture. Ericsson will pay UKP45m cash for the 50% shareholding, which Racal Telecom bought back after Plessey was acquired by GEC Siemens Plc. Orbitel makes analogue cellular equipment, mainly for Racal Vodafone, and is now ready to go into production with the new generation digital equipment to the Groupe Speciale Mobile pan-European standard. Racal Telecom chief executive Gerry Whent will be the first chairman in an annual rotation with an Ericsson nominee; each partner will have two seats on the board.
