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Friday, March 07, 2008

 

Seeks regulatory approval

Globe to expand 3G service to rural areas

By Darwin G. Amojelar Reporter

GLOBE Telecom Inc. on Thursday said it will expand its 3G (third generation) service to rural areas.

Globe, which is partly owned by Asia’s biggest telco, Singapore Telecommunications Ltd., said it has sought a supplementary 3G spectrum from the National Telecommunications Commission (NTC) that will be used particularly for its deployment in rural areas.

The regulator, through NTC Memorandum Circular No. 07-08-2005, allocated radio frequency bands for international mobile telecommunications 2000 (IMT2000) or 3G mobile telecommunications.

Globe wants the assignment of 3G radio frequency bands 825 to 845 megahertz (MHz) and 870 to 890 MHz.

Froilan M. Castelo, Globe’s head for regulator affairs, said the frequencies are of a lower bandwidth than Globe’s current 3G frequency assignment of 1945 to 1955 MHz and 2135 to 2145 MHz (Channels 6 and 7).

“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.

He said that while Globe continues to actively pursue nationwide 3G service expansion, especially in urban areas with presently assigned spectrum, the 3G investment case differs significantly in rural areas where the company cannot expect a reasonable rate of return.

“Technically, as mentioned, the lower bandwidth of the 3G spectrum for which we are applying entails less infrastructure. Consequently, Globe can temper its capital expenditure, and in turn, accelerate 3G service delivery in the countryside,” Castelo said.

In 2006, the country’s second largest mobile phone service provider spent at least P4 billion for its 3G rollout.

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

At present, Globe’s 3G service covers Metro Manila, Metro Cebu and Metro Davao, as well as key provincial capitals and municipalities in 28 provinces.

As of last year, it has 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.

A study done by the International Data Corp. (IDC) said demand for 3G phones will increase this year, although adoption will be faster in the devices space than in the services space.

“Rising market interest, falling prices of handsets and availability of more models catering to different purchasing skews, will further drive 3G phone ownership,” IDC said.

3G provides the subscriber faster access to the Internet and capability to transmit and receive data in various forms, including photos, video, audio.

Globe was one of four telcos that bagged permits to offer 3G more than a year ago. Although bidding for the frequencies was hotly contested, 3G take up however has yet to live up to earlier forecasts of demand.

  
 

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