DoCoMo gets green light for Guam Cellular, Guam Wireless purchase

15 Nov 2006

Japanese mobile operator NTT DoCoMo, the wireless arm of incumbent fixed line operator NTT, says it has received regulatory approval from the Federal Communications Commission (FCC) in the United States, clearing its 100% acquisition of Guam Cellular & Paging, Inc (Guam Cellular) and Guam Wireless Telephone Company, LLC (Guam Wireless). According to DoCoMo, the agreement was concluded on 20 March this year for an agreed sum of USD71.8 million.

Under the terms of the deal, DoCoMo will buy all the outstanding equity of Guam Cellular through an established holding company, after which it will move to buy Guam Wireless through Guam Cellular and subsequently merge the two companies. In addition, DoCoMo has promised to provide funds of up to USD6.5 million to expand and upgrade the enlarged company’s facilities and infrastructure. As a result of the deal DoCoMo will be able to offer an improved service to the large number of Japanese travellers who visit Guam and the Northern Mariana Islands each year. Local inhabitants will also benefit from improved services such as an improved GSM network with a GPRS overlay. In the future the new Japanese owner says it hopes to introduce a W-CDMA network for 3G services utilising frequency owned by Guam Cellular.