Globe earmarks P39.7B to expand mobile phone network

Ayala-controlled Globe Telecom Inc is investing another P39.7 billion to expand its cellular phone network.

Based on its application with the Board of Investments, Globe will fund its P39.7- billion expansion primarily through equity amounting to P25.823 billion or 65 percent of total investment while the remaining 35 percent will come from loans amounting to P13.904 billion.

The expansion which will be called Phase 8 Expansion Project aims to upgrade the 1,349 existing cellsites, install 469 new cellsites operating on the 900 megahertz frequency, 475 cellsites operating on 1,800 MHz frequency, 37 base station controllers, nine new mobile switching centers and eight transit mobile switching centers. Globe’s expansion project would increase its capacity to handle over 6.9 million subscribers by end of 2003.

The project will also improve Globe’s ability to achieve lower dropped call rates, lower signal blocking and a higher call set-up success rate, thereby improving grade of service to subscribers even at peak hours.

By the end of this project, Globe Telecom’s GSM network would have a total of 1,818 base stations operating on the 90 MHz frequency band, 770 base stations operating on the 1800 MHz band, 29 mobile switching centers and 89 base station controllers.

Globe also informed the BOI that almost all telecommunications equipment would be imported since there are no domestic manufacturing facilities for cellular network equipment.

Globe said supply contracts for the provision of telecommunications equipments have been negotiated or are being negotiated with Nokia Telecommunications Oy of Finland, Nokia Austrlia, and Ericsson Radio Systems AB of Sweden.

Globe’s major stockholders are the Ayala Corp. Singapore Telecom Int’l Pte. Ltd., Philippine Central Depository and the Bank of the Philippine Islands (BPI).