Digitel allots $180M for mobile phone expansion

The Gokongwei-owned Digital Telecommunications Philippines Inc. (Digitel) has earmarked $180 million within the next 18 months for the continued expansion of its wireless telephone network.

In an interview with reporters, JG Summit Holdings Inc. president Lance Gokongwei said Digitel plans to install 200 cell sites in the next two years to improve its cellular coverage and to compete head-on with industry leaders Globe Telecoms and Smart Communications.

The funding may come from the firm’s planned issuance of $200 million worth of convertible bonds.

Digitel launched its wireless service, Sun Cellular, in March. The company’s foray into the cellular business is part of its objective to become the preferred full service telecommunications provider in the country.

The company has already spent $220 million for the setting up of its wireless infrastructure.

Digitel’s wireless network was installed by Alcatel and has been designed to accommodate 1.5 million subscribers upon completion. It is envisioned to easily handle millions of text messages per day and will be fully enabled for general packet radio service (GPRS) applications.

Digitel has entered into international roaming agreements with some 20 foreign operators.

By offering state-of-the-art GSM technology, nationwide coverage and superior service, the company aims to break the existing duopoly in the wireless segment.

Digitel will market its wireless service directly through its own dedicated wireless sales team and independent dealers. The company will have business centers/retail shops across the nation particularly in the National Capital Region and key cities, provinces, in major malls, and co-locate wireless service sales offices in the majority of Digitel’s customer centers.

Digitel is the second largest provider of wirelines in the Philippines in terms of working lines. It also offers high-speed data transmission and Internet service, through DigitelOne.

The publicly listed company is 47.43 percent owned by JG Summit Holdings Inc., the flagship holding company of tycoon John Gokongwei, while Telia AB, a Swedish communications company, owns a 9.44 percent block.