formerly GMCR, Inc. - Globe

compensates its dealers based on the type, volume and amount of new
subscriptions sold.
Prior to 01 August 2002, compensation to dealers for prepaid wireless services,
took the form of fixed discounts for prepaid airtime cards and SIM packs, and
promotional airtime call cards for phone kits. Effective 01 August 2002, Globe
introduced a new promotional scheme for prepaid sales (covering Globe Prepaid
Plus and Touch Mobile) to its dealers. Instead of providing promotional prepaid
cards with the sale of a phone kit, Globe discounted its selling price to dealers.
For postpaid wireless services, Globe pays tiered commissions for new
subscriptions based on plan type and volume. This network of dealers is
managed by Globe’s Dealer Account Managers who regularly conduct trainings
for the dealers, inform them of upcoming marketing strategies, promotional
campaigns and product developments. Dealers’ performance is also monitored
by the Account Managers.
Globe also distributes prepaid products (handset kits, SIM kits and prepaid air
time cards) through consumer distribution channels such as convenience stores,
gas stations, drugstores, bookstores, photoshops and automated teller machines.
(iv)
Status of any publicly announced new product or service (e.g. whether in the
planning stage, whether prototypes exist), the degree to which product design
has progressed or whether further engineering is necessary. Indicate if
completion of development of the product would require a material amount of
the resources of the registrant, and the estimated amount;
Products, as enumerated above, are currently being offered in the market at such
tariffs as are approved by the National Telecommunications Commission.
On April 2002, Globe Telecom launched its International Prepaid Roaming
Service. As of December 31, 2002, Globe had entered into more than 240
roaming agreements in over 110 destinations worldwide.
On 7 July 2002, Globe Telecom introduced another first through the launching
of its Multimedia Messaging Service (MMS), the next generation in messaging.
MMS allows a cellular phone subscriber to send and receive messages
containing a combination of text, images and sound. In addition to regular text
capabilities, MMS allows the subscriber to send and receive animation,
speeches, audio and photo messages taken from a phone’s digital camera. With
MMS, Globe was able to introduce services such as “Traffic Cam”, which allows
subscribers to view real time pictures of actual road traffic and “Animated
Messages”, wherein popular character pictures can be exchanged between
subscribers.
On 16 July 2002, Globe Telecom formally launched to the public its integrated
data and internet services solutions brand, “GlobeQuest”. Globe Telecom
decided to consolidate its GlobeNet and GlobeData services, the two brands
under its Wireline Data Group, as the brands are often required to bundle their
services to come up with an integrated solution for the customer. GlobeNet is a
Phil SEC 17A 2002 12