Subject: [NEXTEL-1] Nextel offered to PLDT 'lock,stock and barrel'?

From: Marcel <[email-masked]>
Date: Sun, 17 Nov 2002 03:23:43 -0500

http://itmatters.com.ph/news/news_12052001r.html

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- TODAY'S STORIES -

IT giants adopt new market approach in RP

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Nextel offered to PLDT 'lock, stock and barrel'?

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Excite forges deal to keep operating-- AFP

NewsBriefs-- AFP

MANILA, PHILIPPINES | Wednesday, December 5, 2001

Nextel offered to PLDT 'lock, stock and barrel'?

Trunk radio operator Nextel Communications Philippines, Inc. has reportedly
approached industry giant Philippine Long Distance Telephone Co., Inc. (PLDT) as
a possible white knight after its parent firm recently decided to write off
investments in the local affiliate.

BusinessWorld sources said Nextel Phils. was offered "lock, stock and barrel"
to the dominant carrier, but the PLDT group, currently in the midst of managing
its debts, was not interested.

"Nextel and PLDT's networks are not compatible. Nextel is a trunk radio
operator that has services similar to what GSM (technology) can offer," a source
within the PLDT group said. "There are no benefits, no synergy."

PLDT has also adopted a "no new acquisitions policy until its debts are
addressed completely and sufficiently," another source said.

PLDT recently deferred its acquisition of broadcasting firm GMA Network, Inc.
after the two parties did not agree on the valuation.

Nextel Phils. president Emilio Festejo could not be reached for comment.

The sources said other telecom companies which still do not have a cellular
business may be more interested in Nextel Phils.

"Why would PLDT buy something it doesn't need? It's losing company. It's a
glamorized trunk radio," an analyst from a foreign securities firm said.

Analysts added Nextel Phils. may have difficulty looking for a buyer at this
time, after major shareholder Nextel International, Inc. (NII) decided to
discontinue funding the local affiliate following a review of the latter's
operating performance.

In its report to the US Securities and Exchange Commission, NII said it is
writing off its Philippine operations following its "review of economic
conditions and other relevant factors relating to Nextel's operating company (in
the Philippines)."

"I don't think they can easily get a buyer after it was announced that they
will no longer have shareholder support," another analyst said.

Nextel Phils. is currently being investigated by the National
Telecommunications Commission (NTC) for a possible violation of the maximum 40%
foreign ownership. It risks losing its provisional authority as a trunk radio
operator as a result of the violation.

A complaint endorsed by the Department of Transportation and Communications
(DoTC) said NII may have used two local companies to cover its acquisition of
close to 60% of the local Nextel, a move confirmed by NII in its report to the
US SEC.

It was alleged that Gamboa Holdings, Inc. and Emerald Investments, which hold
20% and 28%, respectively of Nextel Phils. are conduits of NII. NII has reported owning 40% each of Nextel Phils., Gamboa Holdings and
Emerald Investment.

Nextel, last September, launched its wireless Internet service, Nextel
Online, which would enable its users to surf the Internet as well as send
and receive e-mail through their handsets.

Nextel tied up with information technology (IT) companies on its new packet
data service, Nextel Online.

As part of its expansion plans, Nextel is requesting additional 100 pairs of
frequency from the National Telecommunications Commission (NTC).

"Nextel will get an additional pair of frequencies. The company is breaking
ground in technology development. iDen technology is the most efficient," said
NTC commissioner Eliseo M. Rio, Jr. on the sidelines of the Nextel Online
launching.

With Nextel Online, subscribers can receive and send e-mail to any e-mail
application and other Nextel Online subscribers here and abroad, get updates on
news, business, current events, lifestyle and surf all mobile Internet sites at
a low flat monthly fee.

-- Reena J. Villamor

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