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Tuesday, July 15, 2008

 

Telcos seen spending on rural expansion


THE International Data Corp. (IDC) expects Philippine telecommunication companies to spend billions of dollars as they expand in areas outside Metro Manila.

In a statement, IDC estimated that telecom spending will reach $3.4 billion this year to expand service in areas outside the National Capital Region, intensify consumer consumption and optimize business operations and performance.

For information technology (IT), IDC expects spending to reach $2.5 billion this year.

“The Philippines begins to show heightened information and communications technology [ICT] awareness in both the consumer and commercial segments. While some portions of the country have yet to fully adopt or implement IT infrastructures, gradual steps are being taken,” Karen Rondon, communications research manager of IDC Philippines said.

The National Telecommunications Commission (NTC) recently approved the expansion plan of Philippine Long Distance Telephone Co. and Bayan Telecommunications Inc. in Visayas and Mindanao to provide cheaper Internet and communication access.

PLDT will install next generation network (NGN) infrastructure in the main cities of Misamis Oriental. NGN is the latest technology for voice and multimedia communications based on open architecture design made possible through Internet protocol technology.

Bayan, on the other hand, will construct, install, operate, and maintain a local exchange carrier (LEC) service in the province of Leyte.

Bayan plans to offer LEC in Borogan City and Guiuan, Eastern Samar, Abuyog, Baybay City, Carigara, Hilongos, Isabel, Dulag, Polompon all in the province of Leyte, Maasim City, Southern Leyte, and Catbalogan City and Basey, Western Samar.

PLDT’s wireless units Smart Communications Inc. and Pilipino Telephone Corp. have pending applications before the NTC to offer nationwide data communications service in unserved and underserved areas.

Rondon earlier said that IDC expects the country’s telecoms market to continue growing and duplicate its 2007 performance despite looming economic challenges.

Rondon said IDC estimates the telecommunications market to have reached P137 billion in retail revenues last year, or 16 percent higher than the previous year.

“This figure includes operator revenues from providing mobile services, telecom network services and Internet access services to end-users,” she said.

Rondon said mobile penetration in the Philippines was over 60 percent last year, with prospects for this year optimistic.
--Darwin G. Amojelar

  
 

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