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    Digitel sets $393M to grow Sun Cellular
     
    By Lenie Lectura
    Reporter
     

    DIGITAL Telecommunications Phils. Inc. (DIGITEL), the listed phone subsidiary of JG Summit Holdings Inc., is allotting $393 million to expand the network coverage of its mobile-brand unit Sun Cellular.

    The amount will be used to increase its network coverage and capacity in more areas nationwide, including Bulacan, Cavite, Laguna, Pampanga, Batangas, Nueva Ecija, Cebu, Bacolod, Iloilo,  Davao, Cagayan de Oro, Zamboanga and General Santos.

    Digitel’s mobile-phone arm, Digitel Mobile Philippines Inc. expects to double its cell site base to about 4,000 by the end of 2008 from today’s 2,200. The capacity expansion will support the projected surge of subscribers to 10 million this year from 5.5 million last year.

    “The company is gradually building up its customer base alongside the expansion of its network to be able to provide clients with better quality service,” said Digitel.

    Wireless network expansion continues to be carried out by Digitel’s global partners Huawei, Alcatel and Ericsson continue to carry out the wireless network expansion. Digitel Mobile’s digital GSM (global system for mobile communications) network operates on 1800MHz (Megahertz) and have access to a total of 15 MHz of frequency for the service.

    Its leading technical partners and telecom network suppliers are responsible for full-turnkey network infrastructure build-out and capacity expansion of existing cellular sites nationwide.

    Digitel Mobile is making inroads as a third player in the wireless market. It claims that Sun Cellular has the most economical and unmatched products and services for its subscribers.

    Sun also introduced the phenomenal Sun Group Plans for its postpaid business where families and small medium enterprises can get three postpaid lines and three handsets for one line application for only P999.

    For its international service, Sun offers the IDD Top 10, or $0.10 per minute calls to mainland US, China, Hong Kong, Canada, Singapore, Thailand, Malaysia, Brunei, Guam and Macau, where a high concentrations of overseas Filipino workers and migrants have been identified.

    Philippine Long Distance Telephone Co. (PLDT) dominates the mobile-phone industry with an estimated 55-percent market share, and compares with Globe Telecom’s share of about 38 percent.

    Last January, Digitel vice chairman and chief executive James Go revealed plans to tap loans from various European lenders to fund part of its $350 million in capital spending.

    He said Digitel plans to borrow about 85 percent of its spending requirement this year for expansion and core operations.

    Also in January, Digitel told the stock exchange that Digitel Mobile has secured a $33.1-million loan from ING Amsterdam for its mobile-phone projects, particularly in South Luzon and the National Capital Region (NCR).

    In 2007, Digitel posted P1.17 billion in net income from P926.9 million in 2006. Consolidated revenues reached P16.74 billion, up 48.3 percent from P11.29 billion.

    Sun cellular posted P3.99 billion in service revenues, an increase of 40.5 percent, from P2.84 billion. The increase was attributed to growth in subscriber base that boosted revenues in unlimited fees, voice, text messaging and value added services.

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