Digitel sets $240M capex for 2007

Digital Telecommunications Phils. Inc., the telecom unit of JG Summit Holdings Inc. said Monday that it has set aside $240 million to finance its network expansion this year. Digitel operates Sun Cellular, the third most popular mobile phone network in the Philippines. The company said it will finance its capex through external borrowings and internal generated funds. Sun Cellular CEO Charles A. Lim told reporters that of the capex for this year, $200 million will be for the company's wireless business including 3G (third generation) network expansion. The remaining $40 million will be spent on its landline and broadband businesses. "The spending [for 3G] has started this year and we are planning to commercially launch it by next year," Lim said. As of to date, Lim said Sun Cellular has three million subscribers and he expects to double it by the end of the year. Digitel has 1,500 cell sites nationwide, which can handle six million subscribers. "Our main focus is to increase the number of cell sites to improve the quality of services," Lance Gokongwei, Digitel president said during the company's stockholders' meeting. Gokongwei said by end of the year, the total number of cell sites is expected to reach 2,400 nationwide. "Capital investment were focused in the deployment of the latest in technology ugrades, along with additional capacity to equip the company's network for service quality delivery to be at parity or better than competition," Gokongwei said. - GMANews.TV