Globe Telecom inks $110-M deal with Sweden’s Ericsson

Leading mobile phone provider Globe Telecom Inc. has signed a $110-million contract with Ericsson of Sweden for the upgrade and development of its GSM (global system for mobile communication) network infrastructure this year.

Of the amount, $71 million will be part of Globe’s $330-million Phase 8A expansion program, with the company having an option to purchase another $39 million worth of equipment as the need arises.

It is the first time that Ericsson will build Globe’s network in Luzon although it has long supplied the latter with facilities and equipment in the southern islands of the country.

Earlier, Globe has announced that it will embark on a major expansion program to be divided into three phases.

Phase 8A, which will commence in the next few months, will involve the putting up of additional switches, cell sites, transmission facilities, and Intelligent Network (IN) capacity.

"Other phases will follow depending on the actual demand because we want to have flexibility depending on how demand is shaping up," Globe president and chief executive officer Gerardo C. Ablaza Jr. said.

By embarking on an aggressive nationwide expansion program, Globe will not only further increase its geographical reach but will also have more than enough capacity to support its fast-growing subscriber base.

The agreement with Ericsson involves the supply and implementation of 231 new cell sites all over the country, as well as the change-out of 87 other cell sites. As of Dec. 31,2000, Globe already had 1,168 cell sites.

The deal also allows Globe to provide more sophisticated voice, data and other value-added offerings to its customers.

"Ericsson and Globe share the same vision towards providing cutting-edge technology and innovative services to the Filipino consumer. Ericsson delivers the quality network vital to continuously improving the service level our customers have grown to respect and expect," Ablaza said.

On the other hand, Ericsson Phils. president Robert Etteborn noted that the mobile telecom industry, in which the two firms are active participants, has been a major driver in the growth of the Philippine economy.

"We are very pleased that Globe and Ericsson have successfully managed the challenges of accelerated growth. Ericsson looks forward to our continuing alliance with Globe, as the industry moves towards third generation systems and applications," he said.

Globe, a joint venture between Ayala Corp. and Singapore Telecom International, provides cellular mobile telephone system (CMTS), fixed telephone and international communications services, International Private Leased (IPL) lines, Internet access, VSAT (Very Small Aperture Terminal) service, Inter-Exchange Carrier service, Frame Relay, Value-added Network Services (VANS) and other domestic data communications services.

Ericsson is a leading globe communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.