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Thursday, April 03, 2008

 

Globe sets multimillion-dollar 
capex to expand 3G


GLOBE Telecom Inc. said it has set aside millions of dollars to fund expansion of its 3G (third generation) technology service this year.

Gerardo Ablaza, president of the country’s second largest mobile phone service provider, said the company has alloted $60 million to $63 million this year to fund expansion of its 3G service.

“We will be allotting about a third, maybe 30 percent to 35 percent of the company’s $180-million budget for broadband business,” he told reporters.

Globe, which is partly-owned by Asia’s biggest telco, Singapore Telecommunications Ltd., has set aside $400 million to $450 million for its capex this year.

Last year, the company invested $120 million to $150 million for 3G.

The company earlier sought supplementary 3G spectrum from the National Telecommunications Commission (NTC) for its 3G service deployment in the rural areas.

The Ayala-led teleco wants the assignment of 3G radio frequency bands 825 to 845 megahertz and 870 to 890 megahertz.

Froilan Castelo, Globe’s head for regulator affairs said the frequencies are of a lower bandwidth than Globe’s current 3G frequency assignment of 1945 to1955 megahertz and 2135 to 2145 megahertz.

“As such, their transmission and reception capability covers a greater range from a technology standpoint. This characteristic can permit the use of fewer 3G base stations and network elements, while still providing substantial coverage,” Castelo said.

Castelo added that while Globe continues to actively pursue nationwide 3G service expansion, the investment case differs significantly in rural areas where the company cannot expect a reasonable rate of return.

Under its five-year 3G network plan submitted to the NTC, Globe proposes to cover 80 percent of provincial capital cities and towns and 95 percent of chartered cities.

Globe now covers areas in Metro Manila, Metro Cebu and Metro Davao as well as key provincial capitals and municipalities in 28 provinces.

Last year, it installed more than 1,006 3G node base stations, at least nine 3G radio network controllers, two servers, three media gateways, six transmission aggregators and four service GPRS (General Packet Radio Service) nodes.
--Darwin G. Amojelar

  
 

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