Nextel mulls add'l $140-M investment

US-based Nextel Communications Inc. plans to expand its operations in the Philippines and invest an additional $140 million for the installation of its own backbone, pending the approval of the proposed amendments to the Omnibus Investments Code.

Meeting with top Nextel officials, Trade and Industry Secretary Manuel Roxas II told reporters that the company plans to make additional investments to its Philippine subsidiary, Infocom Communications Network (Infocom).

Roxas said Nextel is only awaiting approval of additional incentives under the investment code to see whether its expansion projects can qualify.

"Nextel wanted a briefing on current government policies on investments and telecommunications so we apprised them of the existing programs and policies," Roxas said. "They are planning but they haven't actually decided yet."

If it pushes through, this will be Nextel's second investment into Philippine telecommunications after investing $140 million in Infocom.

Infocom operates a wireless digital communications system using Motorola's integrated digital enhanced network (IDEN) technology marketed under the brand name and service mark, Nextel.

The technology integrates wireless digital communications system for mobile workgroups by integrating mobile telephone service, a digital two-way radio service known as Nextel Direct Connect and text/numeric paging into a single phone.

According to Roxas, however, Nextel is also awaiting the resolution of its pending cases with the National Telecommunications Commission (NTC) which had ordered it to remove cellular services from its trunk radio operations.

The NTC had ruled that since Infocom only had the license for its trunk radio operation, it could not offer cellular telephone services unless it secures first the proper license.