Next Mobile achieves full link-up with major networks

Next Mobile Inc. (NMI), the country’s newest mobile telephone service provider, is now fully interconnected.

NMI has recently agreed on the financial settlement of past arrears incurred by its old management, paving the way for the reactivation of its interconnection with Globe Telecom.

"The voice interconnection agreement with Globe was signed about six years ago but because of arrears of the old Nextel, it was cut. As part of the now NMI’s restructuring, an agreement on financial settlement last Monday triggered the reactivation of interconnection on Feb. 15," NMI chief executive officer Mel Velarde revealed.

Just last month, NMI also entered into a voice interconnection agreement with Smart Communications, thereby allowing subscribers of NMI to call those of Smart and vice-versa. NMI is already interconnected with Digitel Mobile (Sun Cellular).

Velarde said in an interview that the next step for NMI is to work out text-interconnection agreements with Globe, Smart, and Digitel Mobile. NMI was issued a cellular mobile telephone service (CMTS) license by the National Telecommunications Commission (NTC) in December last year.

"We have texting interconnection agreements with most international carriers but we still do not have such agreements with local carriers. But we are hopeful that we can work out the agreements soon," he pointed out.

As part of NMI’s move to tap the international market among overseas Filipinos, the company expects to launch unlimited texting to the United States and Canada soon.

According to Velarde, NMI is spending at least P100 million this year to further expand its network coverage to other parts of the country. NMI currently has a network covering the entire Metro Manila, from Baguio in North Luzon and up to Batangas in Southern Luzon. Expansion in the Visayas is on the way, with the Cebu coverage available by the end of March 2007. Its services will soon expand to Davao and other key cities nationwide.

NMI has secured a P100-million loan from Bank of Commerce and another P20-million loan from UCPB. It has already received offers for another P300 million in credit facility from two to three banks. "If we decide to secure another P300 million in loans this year, then our capital expenditure budget this year will increase by that amount," Velarde said.

The company is also in talks with at least two foreign investors which have expressed keen interest in investing in the company.

NMI projects an increase in gross revenues from P250 million last year to P400 million this year, with a positive bottom line expected to be generated beginning end-2008.

Velarde also anticipated the number of subscribers to grow by an additional 300,000 subscribers in four months’ time following the launch of a new service called the Myworld phone that offers unlimited calling to and from abroad, depending on the plan availed of.