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SMART
Communications Inc. will soon offer new 3G
(third-generation) services that involve more complex
applications following the grant of additional
frequencies to the cellular firm. Smart, to date, has
cornered a total of 25 Megahertz (MHz) of frequency
spectrum.
Officials told the BusinessMirror in an interview last
week that the National Telecommunications Commission (NTC)
has granted Smart’s request for an additional 10 MHz of
frequency band, specifically the 825-835/870-880 MHz
band. These are the very same frequencies which
subsidiary Pilipino Telephone Corp. (Piltel) has been
holding on to for many years now.
Piltel
is no longer operating its AMPS (advance mobile-phone
system technology) network and is just using the GSM
(global system for mobile communications) infrastructure
of Smart for its Talk ‘N Text brand. Piltel had been
paying Smart the corresponding spectrum users’ fee (SUF)
for this purpose.
“The NTC
favorably considers the request and assigns frequency
band 825-835/870-880 MHz to Smart,” a portion of NTC’s
letter to Smart stated.
Smart
and Piltel president Napoloen Nazareno, in a separate
interview, confirmed that the NTC has granted Smart’s
request for additional 3G frequencies and that Piltel
used to occupy the said spectrum.
Prior to
the grant of additional 3G frequencies, Smart was
originally assigned to occupy the 1920-1935
MHz/2110-2125 MHz bandwidth for a total of 15 MHz. These
frequencies were awarded to Smart in January 2006 for
the nationwide deployment of its 3G network.
These
frequencies will enable the country’s leading
wireless-service operator to provide the best-quality 3G
service since this range is seen to have the least
amount of interference and is located at the best
position in the 3G frequency spectrum—allowing for the
clearest possible over-the-air transmission.
Other 3G
firms Globe Telecom, Digitel Mobile Philippines Inc. (DMPI)
and Connectivity Unlimited Resources Enterprises Inc.
(CURE), only have 10 MHz of frequencies each.
Globe
now operates in the 1945-1955/2135-2145 MHz frequency
spectrum. These bandwidths are equivalent to two
channels, which could handle a total of 50 million 3G
subscribers.
DMPI was
assigned bands 1935-1945/2125-2135 MHz. Earlier, the
company said it will spend about P10.6 billion in
initial investment for the first five years. The
cellular unit of listed firm Digitel is the only 3G firm
that has yet to announce plans about its 3G business.
The 3G permit mandates DMPI to commercially launch 3G
service this June. Otherwise, the NTC may have to revoke
its 3G license.
CURE was
awarded the 1955-1965/2145-2155 MHz frequency spectrum.
However, Smart recently bought CURE from PH
Communications Holdings Corp. and Francom Holdings Inc.,
which collectively own 96.57 percent of CURE, for
P419.54 million.
Just
last week, CURE announced it will commercially launch
its 3G business next month. The company will compete
with other mobile-phone firms by giving out free load
credits to subscribers who receive advertisements via
their 2G- (second-generation) or 3G-enabled handsets.
Now a
unit of Smart, CURE has been allowed to ride on to its
massive network. This arrangement benefits CURE in such
a way that it can tap Smart’s 3G network in areas
outside Metro Manila where CURE is not present.
Nazareno
said CURE and Smart inked a facility-management
agreement. “CURE will pay us for the use of our
network,” he added. He emphasized that CURE and Smart
will separately operate their respective 3G businesses.
Smart
said the additional 3G frequency bandwidths will support
media applications for video streaming, video
conferencing, creation and generation of user content,
medical and hospital remote medical diagnosis and
teleradiology, business functionalities, distance
education or e-learning, e-government, telemetry for
machine-to-machine applications, as well as real-time
and on-demand security monitoring and surveillance.
“These
new services will allow the country to stand out in the
development and delivery of 3G services and, at the same
time, fulfill the NTC’s mandate of developing and
providing broadband or high-speed Internet access
nationwide,” Smart legal head Enrico Español said in its
letter to the NTC.
Smart
said the “more complex” applications are said to be
crucial in delivering improved and enhanced services,
especially in the fields of education, medicine and
security.
“The
additional frequency band is necessary to enable Smart
to offer a new and expanded range of leading-edge and
high-speed data 3G services involving more complex
applications which require wider and bigger bandwidth
and faster data speeds,” said Español.
The
additional frequency will also result in a substantial
increase in the SUF. Aside from the P115-million annual
SUF payment for its 15-MHz 3G frequencies, Smart was
also directed by the NTC to pay an additional P150
million annually.
“It
makes sense for the NTC to grant to Smart the unused
frequencies of Piltel. The compensation issue whereby
the new owners of the frequencies, in this case, Smart,
has no problem compensating Piltel since both are under
the PLDT Group,” said an official.
Nazareno
said the group intends to pour money to “blanket” Metro
Manila with 3G services.
Smart
has so far invested around $60 million to $70 million
for its 3G network. It has already deployed over 1,200
cellular sites that are 3G-enabled. There are also over
1 million 3G Smart handsets in the local market. |
