Of the three main competitors in Spain’s rapidly developing mobile phone industry, Indelec SA, the Basque manufacturer in which both Telefonica de Espana SA and Philips Iberica have a stake, accounts for 42% of the Spanish market. The company’s main business is in terminals, and, of Indelec’s $34m sales in 1988 (an increase of 69%), cellular phone equipment accounted for 34%. This year, the company is planning to invest $5.3m in a new factory in Bilbao’s science park, and is also awaiting Telefonica’s approval for the installation of the new mobile phone network, the 900Hz TACS cellular system. Indelec, which last year saw profit soar by 200% to $4.3m, has also signed an major agreement with L M Ericsson for the manufacture and marketing of base stations for the new system.
