Nokia to Supply Mobile Network Products for Orange, France Telecom

Nokia (NOK Quote) signed agreements worth up to $1.3 billion to serve as the third-generation mobile network supplier for operations associated with France Telecom (FTE Quote) in the U.K., France and Germany.

Nokia will provide service for Itineris in France, Orange in the U.K. and MobilCom in Germany. France Telecom owns all of Itineris and Orange. MobilCom, in turn, is 28%-owned by Orange.

Nokia will provide a $1.8 billion financing package for the development of the network.

Yesterday, Nokia reached a $900 million agreement with Australia's Cable & Wireless Optus to serve as that company's sole third-generation mobile network provider.

The American depositary shares of Nokia, which is based in Finland, fell $1.67, or 7.3%, to $21.26 in recent New York Stock Exchange trading.