Three telecom firms invest up to $1b in RP

Three telecom firms invest up to $1b in RP

MANILA (Reuters): Singapore Telecom, Globe Telecom and
Deutsche Telekom will invest US$800 million to $1 billion in the
next 18 months in a Philippine mobile phone venture, National
Telecommunications Commission chief Joseph Santiago said on
Friday.

Globe, a joint venture between Ayala Corp. and Singapore
Telecom, sealed a $2.3 billion merger agreement with Isla
Communications Co., in which Deutsche Telekom has a stake, early
this year.

The agreement gave Deutsche Telekom, Singapore Telecom and
Ayala Corp. approximately a 27.8 percent stake each in the
Globe/Islacom merged entity.

The Islacom-Globe alliance would also create the biggest
digital mobile firm in the country, with about 1.2 million
wireless subscribers and 320,000 wireline subscribers, aside from
complementary service areas.

Santiago said Deutsche met government officials on Friday to
push for the speedy renewal of Islacom's operating license.

Deutsche said in previous letters to government officials that
the delay in the issuance of the license might derail the merger.

Deutsche said in a letter to Trade and Industry Secretary
Manuel Roxas the motion for the renewal of the license "has not
yet been acted upon or resolved by the NTC up to this day, thus
causing tremendous concern and uncertainty among the shareholders
and investors of Deutsche Telekom."

Islacom's license to operate an international gateway
facility, a fixed-line network and a cellular mobile telephone
system had expired on March 29, 1999, Santiago said.

The license was not renewed by the NTC after Islacom failed to
install the required 700,000 lines in its service area in the
Visayas region.