Globe Telecom to spend $310m with Nokia

Globe's mobile capacity will reach 4.5 million subscribers by the end of 2001

By Staff and wire reports

MANILA, Philippines -- Globe Telecom, the Philippines' second largest telecommunications firm, said Tuesday it has signed a $310 million contract with Finnish group Nokia.

The deal will help Globe expand its GSM network to meet a growing subscriber base.

The Nokia contract comes barely a week after Globe signed a $110 million contract with Sweden's Ericsson to upgrade its digital network infrastructure.

The company's president Gerardo Ablaza Jr said last month that Globe would lift the subscriber capacity of its mobile network from 3.5 million last year to 4.5 million by the end of this year.

Part of the Ayala Group

Globe is controlled by the Ayala Group, which has a 43 percent stake. The other major shareholder is Singapore Telecommunications.

Globe said in a statement that Nokia will supply and install a range of telecommunications equipment including mobile switching centres, home location registers, transit switching layer and base station controllers.

Nokia will also provide Globe with its Ultrasite base station solution that will respond to increased voice and data traffic.

Globe gets 78 percent of its revenue from its mobile business, with the fixed-line business contributing 14 percent.

Globe shares lost 10 pesos to end at 690 pesos on Tuesday. The main index lost 26.86 points, or 1.81 percent, to 1,457.97 points.

Nokia shares lost 3.7 percent on Monday in Europe.

Globe Telecom

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