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.