MANILA, The Philippines—Gokongwei-owned Digital Telecommunications Philippines (Digitel) will push through with the launch of its mobile-phone operations this year.
Digitel President John Gokongwei Jr. announced the move to compete in the wireless market, which he described as “highly profitable.” He said Digitel’s GSM network will be formally launched within the year, but refused to disclose further details.
Gokongwei expressed confidence that the cellular mobile telephone service operations of Digitel will be successful despite the competition in the wireless business.
With an 11-billion Philippine peso (US$220 million) capital expenditure budget, Digitel will focus its operations on cellular service using GSM technology and is prepared to step into General Packet Radio Service (GPRS) next-generation technology.
Listed on the Philippine Stock Exchange, Digitel is 79-percent Filipino owned and 21-percent foreign owned. The Gokongweis’ flagship firm, JG Summit Holdings, is the biggest shareholder with a 47.45-percent stake. Swedish firm Telia is the biggest foreign shareholder with 9.44 percent.
