Negotiations to Update Military's Computers Fail

Negotations between a private consortium and the German military to revamp the latter's computer and communications network have failed, a defense ministry spokesman said on Friday. The military, or Bundeswehr, plans to spend about €6.6 billion ($8 billion) over the next 10 years on the so-called "Herkules program" to modernize its software programs, servers and computers. A spokesman for the consortium, Isic 21, which is made up of the European Aeronautic Defense and Space Company (EADS), IT specialist CSC Ploenzke and the phone company Mobilcom, said they had asked for several hundred million euros more than government officials were offering. Once the negotiations are formally called off, Bundeswehr officials will begin talking to another consortium called TIS that includes Deutsche Telekom, IBM and Siemens.