German Army IT overhaul talks collapse

Talks between the ISIC 21 consortium and the German Defence Ministry over a €6.5bn deal to modernise the armed forces' IT network have collapsed, a Ministry spokesman said.

Earlier press reports suggested the two sides could not agree on the amount the government should pay for the project.

European Aeronautic Defence and Space Co (EADS), MobilCom AG and CSC Ploenzke AG formed the consortium to develop the project, dubbed 'Herkules,' more than two years ago.