PLDT group wins RP satellite launch race
PLDT group wins RP satellite launch race
MANILA (AFP): A group led by the Philippine Long Distance Telephone Co. (PLDT) has moved closer to launching the Philippines' first satellite after winning support of members of a rival consortium, officials said yesterday.
Members of the government-backed Agila (Eagle) consortium have agreed to join individually the Mabuhay Philippines Satellite Corp. led by PLDT, said PLDT vice-president Cesar Reyes.
The US$200-million satellite will provide domestic and regional telecommunications services.
PLDT holds 51 percent equity in the satellite, which also includes Indonesia's PT Telkom and PT Pacific Satelit Nusantra, China's Everbright Group Ltd., and three other local telecommunications firms.
Proposals of three US-based satellite launchers are being reviewed, Reyes said, but a well-placed government source commented that the new local partners may present proposals from European concerns Arianespace and Aerospatiale.
The breakaways from Agila -- which had comprised 11 new players in the Philippines' telecommunications industry -- would have an aggregate 30 percent stake in the Mabuhay satellite, Reyes told AFP.
It was not immediately clear how many Agila members have been won over to PLDT's side.
"This means it's full speed ahead on plans to launch the satellite by 1996," Reyes said.
The government source, who asked not to be named, said Manila "supports" the "marriage" of the two groups, and that Transportation and Communications Secretary Jesus Garcia had asked the PLDT group to "be open" to the requests of the new firms.
PLDT was originally an Agila member, but pulled out in August and decided to launch its own satellite, leading to fears that the rivalry would delay the 1996 launch deadline set by President Fidel Ramos.
The two groups have been negotiating since August.
Several issues have yet to be negotiated, among them the pricing of shares, Reyes said.
The PLDT group offered 202 pesos ($8.4) per share to the firms wishing to join. The firms reacted positively to the offer, Reyes said.