Globe Telecom inks P1.1-B supply contract with Nera

Digital cellular phone leader Globe Telecom Inc. signed yesterday a P1.1-billion ($21.68 million) transmission supply contract with Nera Telecommunications, Ltd. for the capacity expansion of its wireless network.

The project is part of Globe’s $330-million phase 8A expansion program for the year. It involves putting up of additional mobile switching centers, dual band cell sites, transmission facilities, and intelligent network capacity.

It also brings Globe’s total investment in Nera equipment to about $27 million. Globe entered into a $2.9-million contract deal with Nera in July 2000 for its North Luzon expansion project, followed by a $3.2-million contract in October for base station control protection in Northern Metro Manila and South Luzon.

Nera Telecommunications is publicly listed on the Singapore Exchange Securities Trading Ltd. and is a premier solutions provider of satellite communications, microwave radio transmission, IT networking, infrastructure, and high value-added electronic contract manufacturing.

The agreement signed yesterday with Nera involves the installation of high-capacity synchronous digital hierarchy (SDH) microwave radios for its Luzon and Visayas BSS access network to complement the company’s existing fiber optic core transmission network.

It is designed to further strengthen the latency and flexibility of Globe’s network to cost-effectively and rapidly meet the explosive demand for capacity brought about by various applications and services now available in wireless systems.

Nera’s transmission network serves as a pipeline that allows calls to be transported from the various Globe cell sites to its base station controllers and network of mobile switches across the country.

Without having to dig up roads and physically lay cables, microwave radio relay is the fastest way to establish transmission networks at a very competitive cost.

"We are confident that Nera’s extensive experiences in SDH transmission technology will provide Globe Telecom with a leading edge in this highly competitive industry," Gerardo Ablaza Jr., Globe president and chief executive officer, said.

He explained that by expanding its existing partnership with Nera, Globe will be able to provide its customers with higher network capacity for faster voice and data transmission as well as prepare the company’s system for future applications.

For his part, Samuel Ang, president and CEO of Nera which provided the microwave transmission to Globe, said that they are aiming to be a market leader in wireless technology. Nera’s wireless solutions are deployed in more than 100 countries to major telcos and television broadcast networks.