FCC approves DoCoMo deal

The Federal Communications Commission has approved Japan’s NTT DoCoMo’s application to buy Guam Cellular and Paging Inc. and Guam Wireless Telephone Co. LLC.

The deal was struck on March 20, 2006, for $71.8 million.

In a statement issued yesterday, Guam Cellular and Saipan Cellular said that DoCoMo got the FCC approval on Monday.

The approval was expected after the U.S. Department of Justice, the Federal Bureau of Investigation, and the U.S. Department of Homeland Security signed an agreement with Guam Cellular and Paging Inc. and DoCoMo Guam Holdings Inc. to address the national security, law enforcement, and public safety issues that were earlier raised in connection with the deal.

Following the agreement, the DOJ, FBI, and DHS informed the Washington D.C.-based FCC that they have no objection to the sale.

However, they want FCC to condition its consent on DoCoMo’s compliance with the commitments set forth in their agreement.

Under the terms of the March deal, DoCoMo will complete the 100 percent acquisition of Guam Cellular through its established holding company, after which it will acquire the business of Guam Wireless through Guam Cellular and merge the two companies.

DoCoMo will also provide additional funds of up to $6.5 million to strengthen the newly formed company’s facilities and infrastructure. Payment will be completed as soon as all the closing conditions have been satisfied.

The acquisitions will enable DoCoMo to provide better service for the large number of travelers, mainly from Japan who visit Guam and the Northern Mariana Islands, and will allow the islands’ residents to benefit from DoCoMo’s world-leading mobile technology.

“These benefits will include enhanced quality of the GSM network and addition of the GPRS ability to launch packet roaming services. DoCoMo also plans in the future to introduce a W-CDMA network for 3G services utilizing Guam Cellular’s frequency,” the statement said.

DoCoMo is the world’s leading mobile communications company. DoCoMo serves more than 52 million customers, of which more than half subscribe to FOMA, launched as the world’s first 3G mobile service based on W-CDMA in 2001.

DoCoMo also offers a wide variety of leading-edge mobile multimedia services, including i-mode, the world’s most popular mobile e-mail/Internet service, used by more than 47 million people.

With the addition of credit-card and other e-wallet functions, DoCoMo mobile phones have become highly versatile tools for the daily life. NTT DoCoMo is listed on the Tokyo (9437), London (NDCM) and New York (DCM) stock exchanges.

Gov. Benigno R. Fitial wrote on June 22, 2006 to FCC chair Kevin J. Martin, expressing his strong support to NTT DoCoMO’s proposed acquisition.

“We strongly welcome NTT DoCoMo’s investment in our market and expect that our citizens will benefit from their financial strength, technological expertise, and innovation,” Fitial said.

If the acquisition is approved, the governor pointed out, NTT DoCoMo will be able to offer the CNMI residents better access to advanced services and technologies in the wireless industry.

Resident Representative to the U.S. Pedro A. Tenorio told FCC that any notion that the security of the U.S. or Guam will be jeopardized by the presence of Japan’s NTT DoCoMo Inc. in the Marianas “is far fetched.”

Tenorio described NTT DoCoMo which is partially owned by the Japan government as “a respectable Japanese company.”