formerly GMCR, Inc. - Globe

Globe operates digital GSM dual band networks operating at 900 MHz and 1800
MHz frequency bands. Globe has access to a total of 30 MHz of frequency for its
wireless service, including 7.5 MHz on the 900 MHz frequency band and 12.5
MHz on the 1800 MHz frequency band for Globe and 10 MHz on the 900 MHz
frequency band for Islacom. Globe’s wireless network covers the entire country.
As of December 31, 2002, Globe had invested approximately P68.2 billion in its
wireless network. In addition to extensive nationwide coverage, Globe’s wireless
postpaid subscribers can also roam to over 110 destinations worldwide.
In the fixed line business, Globe competes with PLDT or both PLDT and Digitel
in its service areas. With intense competition, service providers are expected to
rapidly expand coverage, introduce value-added services, and improve aftersales
service to avoid market share loss and decrease in profitability.
Globe’s principal strengths include: (i) a leading market position; (ii) a strong
brand identity; (iii) financial strength and prudent leverage policies; (iv)a proven
ability to attract and retain quality subscribers; and, (v) size and quality of its
networks.
Globe’s principal shareholders are AC, STI and DeTeAsia. AC is the
Philippines’ largest and most widely diversified conglomerate, with operations in
real estate, financial services, telecommunications, manufacturing, electronics,
information technology & trade and distribution businesses. STI is a whollyowned
subsidiary of Singapore Telecom, the leading full-service
telecommunications provider in Singapore. DeTeAsia is a wholly-owned
subsidiary of Deutsche Telekom, Europe’s largest communications company and
one of the largest communications carriers in the world. These principal
shareholders provide Globe with significant financial support, technological
advisory services, global perspective and local market expertise.
(vi)
Sources and availability of raw materials and the names of principal suppliers;
If the registrant is or is expected to be dependent upon one or a limited number
of suppliers for essential raw materials, energy or other items, describe.
Describe any major existing supply contracts.
Equipment and technology required to render telecom services are mainly
sourced from foreign countries. Globe’s principal suppliers are:
For wireless-
Nokia Oy (Finland); Ericsson Radio Systems AB (Sweden),
Ericsson (Sweden), Digital Microwave Corp., Microwave
Networks Inc., ECI Telecoms (Israel), Enavis (Israel), NERA
(Norway), NEC Corp. (Japan), ASCOM, Benning (Germany),
SEC Cellyte (US), Hawker Batteries, JNB Batteries, Rohas-
Euco (Malaysia), Transmast, Andrews Corporation, Allgon
(Sweden), Allen Telecom Group (Micom), Kathrein, Cellwave,
Huber & Suhner, CMG (Netherlands), Comverse Technologies;
Harris Radio Corporation (US/Canada), Cisco Systems (Phils.);
Communications Solutions, Inc.
SIM cards and call cards are sourced from Schlumberger
Measurement & Systems Intl Ltd. (France), Gemplus
Phil SEC 17A 2002 15