NTT Docomo will own 12,633,486 PLDT outstanding common shares while NTT Com will retain 12,633,487 PLDT common shares and remain a significant shareholder with a similar 7 percent equity holding. DoCoMo may consider increasing its investment in PLDT, provided a suitable opportunity arises, according to the PLDT disclosure.

In addition, PLDT, together with its wholly-owned subsidiary, Smart Communications, Inc., is forging a strategic partnership with DoCoMo. As an offshoot, Smart will be able to offer DoCoMo’s i-mode service exclusively to its subscribers.

DoCoMo’s entry is particularly strategic in light of the recent awarding of 15MHz of 3G spectrum to Smart.

The two carriers will now collaborate for the rollout and development of 3G services in the Philippines.

DoCoMo passed the 20 million subscriber mark for its 3G services last December, only four years after its launch. Smart will also benefit from its collaboration with DoCoMo via codevelopment of other 3G services/applications, roaming arrangements and potential handset/equipment procurement savings.

Smart will introduce DoCoMo’s mobile Internet service, i-mode, exclusively for Smart’s subscribers. DoCoMo will provide the know-how, technologies and patents necessary for Smart to operate the i-mode service over GPRS and W-CDMA networks.

i-mode enables mobile phone users to access over 100,000 Internet sites as well as specialized services anywhere in their country of use at attractive rates.

Charges are based on the volume of data transmitted.

i-mode is now available in Germany, the Netherlands, Taiwan, Belgium, France, Spain, Italy, Greece, Australia, Israel, Russia, United Kingdom, Ireland and Singapore.

PLDT, DoCoMo, NTT Com and PLDT’s single largest shareholder group, First Pacific Company (FPC) and certain affiliates of FPC, yesterday signed a Cooperation Agreement to amend their existing contracts and reflect the new shareholding arrangements.

As a result of DoCoMo’s acquisition of 7 percent of PLDT, one of the current PLDT directors nominated by NTT Com will be replaced by a DoCoMo nominee.

The share acquisition and other business arrangements takes effect after DoCoMo, PLDT and Smart acquire certain licenses and approvals.

"The addition of DoCoMo as a strategic partner will certainly enhance our ability to develop attractive 3G offerings for our market," Napoleon L. Nazareno, President and CEO of PLDT and Smart noted.