Liberty Telecom to spend P1.72B to boost cellsites in Manila

MANILA, Philippines - Liberty Telecom, the flagship telecommunications entity of San Miguel Corp. (SMC), is spending about P1.72 billion to increase the number of its cellsites in Metro Manila from 400 to 600.

Liberty chairman Ramon Ang also revealed on the sidelines of yesterday’s stockholders’ meeting that they hope to double their current mobile broadband subscriber base of 48,000 by the end of the year.

As this developed, Ang expressed confidence they will be a powerful third player in the local telecommunications industry, next to PLDT-Digitel and Globe Telecom.

“We are happy for the PLDT-Digitel deal and for John Gokongwei (chairman emeritus of the JG Summit Group). He is my good friend and a very nice guy,” he said.

In 2010, Liberty, a joint venture between SMC and Qatar Telecom (QTel), invested P1.06 billion for its network and transmission equipment. At present, SMC has a 32.7-percent stake in Liberty Telecom Holdings via Vega Telecom. It has also signed a memorandum of agreement with QTel, which also holds shares in Liberty, to explore areas on wireless broadband and mobile communications projects. He said they have an option to go up to 49 percent.

SMC, through Vega Telecom, has also acquired Bell Telecommunications as well as a majority stake in Eastern Telecom. When asked whether they will acquire the remaining stake in Eastern from the group of businessman and former Trade Minister Roberto Ongpin, Ang earlier told The STAR that what they have bought so far is what SMC has committed to buy from Ongpin.

SMC also earlier revealed plans of acquiring Express Telecommunications (Extelcom), also majority owned by Ongpin’s group, but has kept mum as to when.

Ang also told The STAR earlier that their plan is to consolidate all their telecommunications interests in one holding company.

Meanwhile, SMC’s top executive said that they intend to add 200 more cellsites in the city, each of which costs around $200,000.

Ang added that while they are currently focusing on investing and operating in Metro Manila, there are plans in the future to expand to other areas as well.

During yesterday’s stockholders meeting, the shareholders approved an amendment to Liberty’s articles of incorporation to increase the number of board directors from seven to nine.

Company officials also said that Liberty has an authority to increase its capitalization by up to P3.6 billion.

Liberty has launched its WiMax mobile broadband service in Metro Manila and has earned P250 million from this service so far. Most of its subscribers are on postpaid subscription.