formerly GMCR, Inc. - Globe

Table 1 – List of wireless operators
Operator
Year of
Commercial
Launch Subscribers Wireless System
Wireless
Technology
Operating
Spectrum
Globe 1994 5,719,400 (1) Digital GSM 20MHz
Islacom* 1994 852,785 (1) Digital GSM 10MHz
Smart 1994 6,825,686 (2) Analog/Digital ETACS/GSM 15MHz
Piltel 1991 1,773,620 (2) Analog/Digital AMPS/CDMA 11MHz
Bayantel - - Digital GSM 10MHz
Extelcom 1991 141,725 (3) Analog AMPS 10MHz
Digitel 2003
(4)
Digital GSM 10MHz
* Wholly owned by Globe
(1) Source: Globe disclosures for the year ended December 31, 2002.
(2) As of 31 December 2002 disclosures of SMART and Piltel.
(3) Subscribers as of December 31, 2000; Source: 2000 annual report of Millicom International
Cellular, S.A. (in report of Express Telecommunications).
(4) No data available.
The wireless communications industry has experienced consolidation since
2000. PLDT acquired Smart in March 2000 and Globe acquired Islacom in June
2001. Currently, Smart and Globe are the two dominant players in the market.
In 2000, Bayantel obtained a license to offer digital wireless services using
10MHz of frequency on the 1800 MHz frequency band. However, Bayantel has
been delayed in launching commercial operations due to litigation over the
validity of its license. To date, Bayantel has not formally launched its wireless
service to the public. Also in 2000, Digitel was granted a license to offer digital
wireless services using 10MHz on the 1800 MHz frequency. Additionally,
Infocom Communications Network, Inc. (NEXTEL), although licensed for a
wireless radio trunked communications system, has also begun to offer call
service connectivity to wireless and wireline users. On 20 February 2003, Digitel
became the latest industry player, after it announced the commercial launch of its
wireless service under the brand name Sun Cellular.
The government has indicated that it may award licenses to new entrants and
reallocate frequencies, which have not been used by existing operators. We
expect the industry will become increasingly competitive with the entry of new
competitors and changing technology.
On 23 July 2002, the NTC issued permanent CPCNs to Globe and Islacom for
their respective CMTS, LEC and IGF services. The CPCN allows the
telecommunications firms to operate their respective services for a term
predicated upon and co-terminus with the congressional franchise granted unto
it. Globe Telecom and Islacom were granted their permanent licenses after
having demonstrated their legal, financial and technical capabilities in operating
and maintaining cellular mobile telephone systems, local exchange carrier
services and international gateway facilities. Additionally, Globe Telecom and
Islacom exceeded the 80% minimum compliance requirement for coverage of all
provincial capitals, including all chartered cities within a period of seven years.
Phil SEC 17A 2002 14