Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) is currently working with experts from British Telecom to assist in the former’s transition from its legacy or copperwire network to an all-IP next generation network (NGN).
The NGN is one network that transports all information and services (voice, data, and all sorts of media such as video) by encapsulating these into packets like it is on the Internet. NGNs are commonly built around the Internet protocol, and therefore the term “all-IP” is also sometimes used to describe the transformation towards NGN.
According to PLDT chairman Manuel Pangilinan, the advisory group from British Telecom has been in the Philippines for about two months now. “They have been advising us on their own experience in terms of their migration from the legacy network to NGN,” he said.
British Telecom began deploying and operating NGN switches and networks in 2006, aiming to have all-IP switches in their network by 2008. “They took three years to complete their migration to NGN. Once this study is concluded maybe by the end of this year, we will have a better idea on how long it will take for us to complete the transition,” Pangilinan added.
PLDT has a budget of P25 billion for capital expenditures this year, and probably the same amount next year, with the bulk to be spent on putting up broadband network infrastructure. Around P15 billion will be spent for the cellular wireless group, P8 to P9 billion for the fixed line group, and P1.5 billion for information and communications technology arm ePLDT.
Its rollout program includes installing 700,000 NGN lines this year from an initial rollout of 150,000 in 2005.
The shift to NGN is part of PLDT’s bid to revitalize its fixed line business, which has remained way behind the company’s cellular wireless business in terms of revenue contribution. Investments made by PLDT on broadband technology have been paying off, with income from both wireless and wireline broadband (DSL) growing at faster rates than its other business concerns. Pangilinan estimates that total subscriber base for both wireless and wireline broadband will exceed 550,000 by yearend.
PLDT president and CEO Napoleon Nazareno earlier said the company remains committed to executing its revitalization efforts for the fixed line business which are centered on the NGN upgrade and its related processes, adding that their objective of revitalizing the fixed line business requires a significant amount of time, effort and resources.
PLDT embarked recently on a major organizational restructuring which is more closely in line with the company’s strategic goal of transforming itself into a new generation communications group.
“The re-invention of the PLDT Group - and of the fixed line business in particular - is fundamental to our overall effort to attain a higher level of convergence and integration within the Group. Of course, our overarching goal is to make PLDT a truly world class company — in terms of profits, customer orientation, and quality of service,” Pangilinan explained.
As PLDT Group president and chief executive officer, Nazareno has been tasked to ensure that the group will focus on the critical strategic objective of business transformation, and to continue optimizing its combined strengths across the wireless, fixed, broadband, BPO and media/content businesses.
To support Nazareno, the position of chief wireless adviser has been created to be filled in by Orlando Vea, former president and founder of Smart.
“Mr. Vea has extensive experience in the wireless and media/content business. His involvement at Smart in a senior position will enhance the company’s leadership position and strengthen its ongoing efforts to balance and grow its business beyond staple voice and SMS revenue streams into new spaces such as mobile TV, mobile Internet, multimedia services and mobile commerce,” PLDT said.
Pangilinan told The STAR that with Vea’s time now devoted to Smart, they will have to find a replacement for Vea who was occupying the post of president and CEO of Mediaquest Holdings, a wholly owned subsidiary of the PLDT Beneficial Trust Fund. Mediaquest has interests in various media-related ventures, including a controlling interest in Nation Broadcasting Corp. (NBC) which operates a network of radio and TV stations, a minority interest in Sky Cable, and a 30 percent interest in a newspaper company.