Toll Collect has failed so far, but now has a second chance

The telecoms giant recorded a 364m-euro (�246m; $448m) net loss for the last quarter of 2003.

The cause was a 442m-euro charge to cover losses at Toll Collect, a road-charging system for trucks developed with DaimlerChrysler.

The venture has been unable to produce a toll system good enough to meet government specifications.

Nonetheless, the government agreed earlier this month to give Toll Collect another chance, and rejigged the management to give Telekom more control.

Back from the brink

Losses from Toll Collect have come just as Deutsche Telekom is starting decisively to recover from a highly tense period.

The main telecoms business is picking up

The company lost the faith of the markets in 2002, amid disputes over its strategy, and concerns of its heavy debt burden.

At the end of that year, it unveiled a 25bn-euro loss, then the biggest in European corporate history.

Chief executive Kai-Uwe Ricke, who took office at the end of 2002, has been charged with turning the company's fortunes around.

He has slashed debt, largely by spinning off non-core units, and is generally credited with positioning the firm to benefit from the recent upturn in hi-tech and telecom markets.