The Turkish government has agreed to allow Nokia to recoup losses related to Telsim's loan defaults. The exact dollar amount of the settlement has yet to be determined.

Nokia's issues with Telsim first occurred when Telsim defaulted on its repayment obligations under a loan facility related to network equipment delivered in 2000. Nokia has been fighting to recover the lost funds.

"The settlement is subject to the formal board approval of (Turkish Savings and Deposit Insurance Fund), and the amount of the settlement will depend on the final proceeds from the future sale of Telsim's assets," Nokia said in a prepared statement.

By resolving the legal tussle between the companies, Telsim is expected to have an easier time being sold, although the Turkish wireless operator does still have outstanding issues with Motorola.

In other Nokia news, the company has signed on to deliver push-to-talk capabilities to mobilkom Austria. As part of the agreement, Nokia will deliver its push-to-talk over cellular (PoC) network solution. Terms were not disclosed.

Nokia calculates that 17 of its PoC systems are currently being used commercially. The company also has 19 GSM PoC handsets on the market.