Sun Cellular operator to spend $393M for 2008 expansion

MANILA, Philippines- Digital Telecommunications Phils. Inc., the operator of the country's third largest mobile phone brand Sun Cellular, plans to spend $393 millon this year to improve its network coverage and capacity. The telecom firm, which is owned by the Gokongwei family of the JG Summit group, expects to double its cell site base by the end of 2008 to support the projected surge of subscribers. It will expand coverage from current 2,200 cell sites to about 4,000 by end of 2008. Sun Cellular is trying to increase coverage in through aggressive expansion efforts in key cities and provinces such as Bulacan, Cavite, Laguna, Pampanga, Batangas, Nueva Ecija, Cebu, Bacolod, Iloilo, Davao, Cagayan de Oro, Zamboanga, General Santos, among others. As of end-2007, Sun Cellular has about more than 5.5 million subscriber base. Digitel posted a net income of P1.17 billion in 2007 from P962.91 milllion losses in 2006. The company's revenues rose 48.3 percent to P16.75 billion last year from P11.29 billion in 2006 owing to higher service revenues generated by the wireless business. Its wireless business reported P3.9 billion service revenues last year, a 40.5 percent increase against P2.8 billion in 2006. Digitel said the increase was attributable to the continued growth in subscriber base that boosted revenues in unlimited fees, voice, short messaging system, roaming and value added services. The company's wireline voice communication service revenues however, declined to P3.9 billion in 2007 from P4.5 billion in 2006. - GMANews.TV