|
SMART Communications, Inc. has raised capital expenditure this year
to finance its 3G (third generation) and wireless Internet broadband
network capacity expansion, the Philippines’ largest mobile phone
service provider announced.
Napoleon Nazareno, Smart and Philippine Long
Distance telephone Co. (PLDT) president, said this year’s capex,
which is set higher at P15 billion than last year’s P14.2 billion,
will be spent on expanding the company’s 3G, 2G and Internet
broadband network capacity as it expects around 1.4 million to 1.5
million additional subscribers by end-June. At end-May, the combined
subscriber base of PLDT’s wireless units, Smart and Pilipino
Telephone (Piltel) Corp., reached 32.6 million.
“Smart and Piltel together continue to be the
industry leader with around 55-percent market share in terms of SIM
[subscribers identification module] subscribers and 59 percent of
revenue market share,” Nazareno said.
Last year, Smart’s capex was used to further
upgrade its core, access and transmission network facilities, expand
its wireless broadband facilities and develop IT platforms for new
businesses.
This year, the PLDT group will spend P25
billion, of which P9 billion is budgeted for PLDT alone and the
balance for capital spending of its subsidiaries.
In 2007, the PLDT group spent P24.8 billion.
Manuel V. Pangilinan, PLDT chairman said it has
lost P139 billion in market value as of June 10 owing to weak
financial market caused by the US economic slowdown and higher food
and fuel prices.
On June 10, the company’s share price closed
at P2,345, a sharp reduction of 23 percent since year-end. Its
market value amounted to P460 billion, equivalent to about $10.3
billion based on the closing price.
This year, Pangilinan said the company faces
unprecedented risks and pressures. “We’re seeing not only
financial assets languishing as [happened] 10 years ago [during the
Asian crisis] but rising food and fuel prices as well,” he said,
adding “this is critically important since consumer expenditures
is the mainstay of our business.”
Despite this, he is optimistic about posting a
“steady” growth this year. PLDT maintained its core net income
guidance this year of P37 billion and service revenue of between
P145 billion and P146 billion. Last year, the company’s core net
income amounted to P35.2 billion.
-- Darwin G. Amojelar
|
