The Philips company in Eindhoven saw a market for its radios in the Dutch colonies. Their Research Labs got support from companies who were trading goods between The Netherlands and Batavia (now Indonesia). The PHOHI was officially founded on 18 June 1927. In 1928, test transmissions commenced from a site in Huizen, Noord Holland. It was chosen because of the high water table on the land near the Zuyderzee lake (now Gooimeer). This meant there was a good conductivity for an efficient earth, which lead to stronger signals in the target areas.