PLDT to convert into next generation network in 3 yrs

Philippine Long Distance Telephone Co. (PLDT) will fully convert into a next generation network (NGN) in three years’ time, according to PLDT group chairman Manuel Pangilinan.

NGN is a broad term to describe some key architectural evolutions in telecommunication core and access networks that will be deployed over the next five to 10 years worldwide. The general idea behind NGN is that one network 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.

At present, only around 108,000 landline subscribers of PLDT have been migrated from the public switch telephone network (PSTN). “We will migrate where we are ready,” PLDT president and CEO Napoleon Nazareno, for his part, said.

PLDT has tapped the services of consultants from British Telekom to advise the company on its migration to NGN. “We have been advised to take it slowly, to proceed with the rollout a step at a time,” Pangilinan said.

Of the 2007 capital expenditure of P24.8 billion, around 20 percent or P4.93 billion was spent for NGN and data. Roughly 27 percent or P6.59 billion was used for the cellular network, 19 percent or P4.84 billion for transmission and maintenance, seven percent or P1.82 billion for wireless broadband, three percent or P679 million for ePLDT, among others.

This year, around P25.4 billion will be spent for capital expenditure, of which P10 billion will be set aside for network and core access, P12 billion for wireless, and P3 billion for fixed.

The migration of PLDT’s network to NGN is key to the company dominating the local broadband market, particularly for fixed broadband. At present, the PLDT group has more than 70 percent of the Philippine broadband market, offering both fixed and wireless technologies.

PLDT’s DSL (digital subscriber line) subscriber base nearly doubled from 133,000 in 2006 to 264,000 in 2007. Including SmartBro and WeRoam (wireless broadband), the PLDT group’s total broadband subscriber base more than doubled to 579,000 as of end-2007.

By 2009, Pangilinan projects total broadband subscriber base for the group to reach one million.

Meanwhile, Nazareno said significant investments will continue to be made in support of broadband. The investment includes incremental capacity and building network resiliency.

PLDT’s plan this year includes expanding its Internet bandwidth to near terabit capacity.