Competition heats up for Manila mobiles

A mobile phone user in Manila checks her messages

By CNN's Amabelle Layug

MANILA, Philippines -- Competition between the country's two top mobile phone companies is heating up.

Each is linking with an international telecommunications giant in an effort to become Manila's leading service provider.

SMART Telecommunications, a subsidiary of Philippine Long Distance Telecommunications (PLDT) said it is negotiating to sell a strategic stakein the company to Japan's top mobile operator NTT DoCoMo.

DoCoMo's parent NTT already owns 15 percent of PLDT's outstanding common shares, while the First Pacific group, led by Manuel Pangilinan, has a controlling stake in PLDT. Pangilinan is PLDT chief executive.

PLDT said it continued to have regular discussions with the NTT Group on a range of business issues. It did not elaborate.

Globe Telecom boosts equipment purchases

SMART's mobile rival in the Philippines, Globe Telecom Inc, recently signed a $21.7 million (Peso 1.1-billion) transmission supply contract with Norway's Nera Telecommunications.

The project involves the installation of high-capacity microwave radios to complement Globe's existing fiber-optic transmission network.

Globe, the telecommunications arm of the Ayala Group, pioneered digital phone services in the Philippines.

The project is part of Globe's $330 million expansion program for the year, which involves additional mobile switching centers, dual band cell sites, transmission facilities, and intelligent network capacity.

Globe's total investment in Nera equipment is about $27 million.

Last week, Globe signed a $310 million contract with Finnish group Nokia, also to help it expand its GSM network to meet a growing subscriber base.

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

Globe Telecom to spend $310m with Nokia
May 15, 2001

PLDT - The Power of Convergence
SMART - Official Website
Globe Telecom :: Make It Simple

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