Cellphone firms build up 3G investments

The country’s top cellular phone service companies are increasing their investments in 3G, or the third generation of mobile communications technology, in anticipation of better patronage from their users as well as those who have not yet embraced the technology.

According to the Philippine Long Distance Telephone Co. (PLDT) group, they now have 1.4 million 3G handsets in their wireless network. Smart Communications chief wireless advisor Orlando Vea said they are accelerating their network rollout as they expect increased 3G usage in the second half of the year and onwards.

He noted that 3G usage from January to June 2008 has doubled compared to last year, attributing this to the increased usage of 3G for Internet access.

Vea said he based his optimism on the increased acceptance of 3G to the fact that the price of 3G mobile handsets has gone down significantly, among other reasons.

He also said Smart is currently developing with its partners new applications for 3G to encourage more subscribers to adopt the technology.

Smart earlier acquired CURE, a company owned by businessman Roberto Ongpin, as part of its 3G expansion. CURE is one of only four companies that were awarded 3G licenses and frequencies by the National Telecommunications Commission (NTC). The three others are Smart, Globe and Digitel Mobile.

Meanwhile, Globe Telecom is building up its 3G network and has set aside a significant part of its 2008 capital expenditure budget for network expansion.

Globe officials revealed they now have 700,000 3G-enabled handsets in their network, of which around 350,000 subscribers are actually utilizing 3G services.

Another cellular company, Digitel Mobile, is set to commercially launch its 3G service this year.

Parent company Digitel is spending around $300 million (P12 billion) this year for the expansion of its cellular, fixed line and broadband networks.

Digitel president and CEO James Go projects the number of their mobile phone service subscribers (Sun Cellular) to grow from the current six million to 10 million by yearend. “We hope to hit high double digit by next year,” he said.

Sun Cellular expects to end 2008 with 4,000 cellsites under the ongoing Phase 8 of their expansion program, as against 2,600 cellsites under Phase 7 of the network rollout.

“We are building a telecommunications network that is comparable if not better than those of the older players. Our voice and data technology are one of the best in the market. We are employing the latest technology. Our primary focus is building first-class network for 2G, 3G and broadband. We are migrating to an all IP network,” Go earlier said.

He also revealed that by the end of the year, their wireless broadband network that utilizes 3G and 3.5G will cover the entire Metro Manila.