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GLOBE
Telecom Inc. is expanding its 3G (third generation)
mobile-phone service in rural areas despite a sluggish
take-up in 3G subscriptions.
The
joint venture between Ayala Corp. and SingTel of
Singapore asked the National Telecommunications
Commission (NTC) for the additional 3G frequency
bandwidths (825-845 and 870-890 Megahertz).
“The
supplementary 3G spectrum sought shall be used
particularly for Globe’s 3G service deployment in rural
areas of the Philippines,” said Froilan Castelo,
regulatory affairs chief of Globe.
The
frequencies, he said, are of a lower bandwidth than
current 3G frequencies assigned; as such, their
transmission and reception capability covers a greater
range from a technology standpoint.
This
characteristic, added Castelo, permits the use of fewer
3G base stations and network elements, while still
providing substantial coverage.
“While
Globe continues to actively pursue nationwide 3G service
expansion, especially in metro cities with presently
assigned spectra, the 3G investment case differs
significantly in rural areas where we cannot expect as
reasonable a rate of return,” said the Globe official.
Castelo
said the lower bandwidth entails less infrastructure.
Consequently, Globe can temper its capital expenditure (capex),
and in turn, accelerate service delivery in the
countryside.
The
cellular firm has so far invested $60 million to $65
million in its 3G mobile-phone network.
As per
Globe’s five-year coverage 3G coverage plan submitted to
the NTC on October 21, 2005, Globe’s 3G network already
covers 10 percent of the rollout commitments for both
2007 and 2008, Castelo said.
Globe’s
network has detected around 500,000 3G-enabled handsets,
but around half of the number is actually subscribed to
the service.
The
company commercially launched its 3G service on April
30, 2006, ahead of the 30 months from January 4, 2006,
deadline imposed by the NTC.
The 3G
network coverage of Globe and rival Smart Communications
Inc. now spans more than 200 cities and towns across the
country while the other two 3G firms are still in the
process of rolling out their 3G cellular sites.
Of the
four licensed-3G operators, Digitel Mobile Philippines
Inc. and Connectivity Unlimited Resources Enterprise
Inc., or CURE, have yet to commercially launch the
service.
Smart
has so far invested $60 million out of the P33-billion
planned capex in six years.
Based on
its five-year roll-out plan, a total of 1611 cities and
municipalities, ranging from first class to sixth class,
will all benefit from the project.
Meanwhile, the cellular unit of Digitel told the NTC
that it has put up 40 on-air cellular sites and that by
this month, Digitel Mobile would have activated 180
sites and further to 320 come June.
At
present, Digitel Mobile is on the first phase of its
roll-out commitment. Its 3G network would be available
nationwide.
CURE is
keeping the June 2008 target for the commercial
operation of its 3G network.
President and chief executive officer Eric Recto said
CURE activated its 3G network last December 15 and is in
the process of optimizing its network performance and
coverage in preparation for a commercial launch.
Its test
subscription members total 1,000. CURE has 30 network
sites that cover the cities of
Makati, Mandaluyong and
Pasig,
and secondary signal coverage in the cities of Taguig,
Pasay,
Manila
and Quezon.
The
company earlier said it will install 280 base stations,
which will serve an initial market niche of at least
200,000 subscribers.
CURE has
set P11.55 billion in capital expenditure for its
five-year roll-out plan. Of the amount, P3.95 billion
will be spent in the first year; P1.93 billion in the
second year; P2.48 billion in the third year; P1.66
billion in the fourth year; and P1.85 billion in the
fifth year. |
