Mitsubishi backs out of European telecom

Mitsubishi Electric says it plans to give up on its mobile telephone business in Europe because it could not break into the market, EU Business reports.

The Japanese electronics maker said it would shut down its subsidiary Melco Mobile Communications Europe based in Cesson-Sevigne, France, after two years of operation. Melco, which is valued at $38.7 million, said it would maintain services for mobile users even after leaving the market.

"Despite efforts to launch a number of highly regarded GSM models with the latest technology for European operators, there has been fierce competition with industry leaders like Nokia, Motorola, Samsung," a company statement said.

The statement said that the company "has not forecasted a return to profitability for the foreseeable future."

This is the second time that Mitsubishi has seen a setback in Europe's telecoms market. During the late 1990s, the Japanese company left the market after it failed to launch several models under the name Trium.

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