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THE National Telecommunications Commission (NTC) has approved the
investment of Philippine Long Distance Telephone Co. (PLDT) in the
construction of a multimillion-dollar international and local
submarine cable network aimed at addressing the rising demand for
Internet broadband bandwidth.
In an order, NTC Chief Ruel V. Canobas aid
that the approval of PLDT’s application to participate in the
ownership, construction, maintenance and operation of Asia-America
Gateway (AAG) submarine cable network and cable landing station in
La Union would increase the country’s bandwidth connectivity
worldwide.
He said that it will also add more
capacity to ensure redundancy in case of breakdown of other
submarine cable systems in the region.
Fernando M. Sobierra 3rd, PLDT’s legal
counsel, had said that the AAG project will cost about $553.63
million, with the telecom company committed to infusing $50 million,
or a 9.03-percent investment share.
For the cable landing station in La Union, PLDT
would invest about $62 million which will be financed through
internally-generated funds, he said.
PLDT targets to complete the construction of the
landing station in Barangay Bacuit, Bauang, La Union, in the first
quarter of this year and the main cable system is scheduled to begin
operations by the end of this year.
With the completions of the project, PLDT
expects to meet the forecast growth in bandwidth requirements from
new applications as it anticipates growth in international traffic
within Southeast Asia and between the region and the US mainland.
PLDT along with other major telcos around the
world signed an agreement to build a new submarine cable system from
Southeast Asia to the US. NEC Corp. and Alcatel Submarine Networks
would serve as contractors for the marine survey and cable and
equipment installation.
The system will connect Malaysia, Singapore,
Thailand, Brunei Darussalam, Vietnam, Hong Kong, the Philippines,
Guam, Hawaii and California.
As the Philippine landing party, PLDT will build
a new cable station in La Union. Philippine carriers BayanTel and
Eastern Telecommunications Phils. Inc., are also parties to the
agreement.
-- Darwin G. Amojelar
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