NTT to widen ties with PLDT

Dylan Bushell-Embling
16 May 2011
00:00
News
Daily News

Japan's NTT will expand its partnership with PLDT, and may pay $263 million to maintain its 20% stake in the Philippine operator.

NTT subsidiary DoCoMo has flagged plans to establish a joint business co-operation committee with PLDT as well as its mobile subsidiary Smart.

DoCoMo has also entered an option agreement to acquire around 2% of PLDT's share capital from investor JG Summit.

The option will be taken if PLDT manages to close the acquisition of a controlling stake in rival Digitel in a transaction that could involve a share-swap component.

The PLDT-Digitel deal has been arranged, but there is a question as to whether regulators will approve a merger that could at least temporarily return the Philippines' telecom market to a duopoly.

DoCoMo said the option agreement is aimed at protecting the NTT group's combined 20% holding – including the 7% stake held by DoCoMo itself – from dilution.

DoCoMo first acquired its 7% holding in March 2006, and the NTT group's holding hit 20% in February 2008.

The operator separately announced an agreement with Twitter to develop mobile apps and services incorporating features of the social network site.

DoCoMo said it will first incorporate real-time tweets and other content into the search results on its i-mode portal (for feature phones) and DoCoMo market (for smartphones) either late this year or early into the next.

Related content

Comments
No Comments Yet! Be the first to share what you think!