Globe Telecom set to expand VisMin operations

Globe Telecom is set to expand its operations in Visayas and Mindanao with the recent signing of a $42 million (P1.68 billion) supplier credit agreement with Ericsson of Sweden.

The third major deal forged by Globe with Ericsson brought the total amount of investments the Ayala-owned company has with the latter to more than $122 million (P4.88 billion) since 1998.

Under the set-up, Ericsson will provide wider and enhanced coverage and bigger capacity to Globe's mobile phone service in the two major regions although work in both areas has already started in January and is scheduled for completion by yearend.

Ericsson will supply Globe with the necessary hardware, application software and related training and services for the project.

Incidentally, Globe's $42-million allotment for Visayas and Mindanao is part of the firm's total $300 million (P12 billion) nationwide expansion program, with the end goal of supporting almost three million subscribers by December this year.

Globe currently has over one million customers and is confident that with the popularity of prepaid phone kits as well as the affordability of handsets and introduction of new value-added services, more people will be enticed to use the product.

Manuel de los Santos, Globe senior vice president for mobile business, said that the move is also a way of reinforcing the company's leadership in the digital cellular phone market.

"Globe is currently the number one cellular operator in Visayas and Mindanao in terms of areas covered and capacity. This expansion in fact supports Globe's digital cellular leadership in the Philippines," he pointed out. --