NEWSFLASH

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NO PROFITS FOR NEW MOBILE PHONE COMPANIES

Manila, Nov. 10, 1998 - Due to very stiff competition and huge infrastructure cost, the outlook looks dim for companies interested in offering the new mobile phone system approved recently by the National Telecommunications Commission.

This analysis was arrived at by the UBS Global Research study which focused on the Asia telecommunications situation.

The paper pointed out that there is no need for high frequency systems such as the personal mobile telephone system (PMTS) in areas outside metro Manila due to the very low nationwide penetration of 1.4 percent.

PMTS is the mobile technology phone system which features more state-of-the-art possibilities than the cellular mobile telephone system right now available from five local providers.

According to UBS, it will not be profitable to fight cellphone operators over a small market while spending billions of pesos for infrastructure.

There are 25 companies interested in bidding for PMTS franchises when the NTC offers it next year.