Bayantel to offer mobile service

Lopez-owned Bayan Telecommunications (Bayantel) is planning to finally utilize its cellular mobile telephone system (CMTS) license by going into a mobile service that will entail an investment of around P500 million only.

Bayantel chief executive consultant Tunde Fafunwa explained that unlike the traditional approach of spending huge amounts for separate cellular network, there are non-traditional alternatives available to the company to give its subscribers "mobility."

"Yes we are going to launch a CMTS service, although we are hesitant to call it that. What we are going to offer will leverage on our fixed-infrastructure, the IP technology, our wireless local loop as opposed to a separate, dedicated nationwide mobile service," Fafunwa said.

It’s a combined service where certain aspects of it are going to be mobile, which will require and will make use of the CMTS license we have," he added.

Fafunwa said one possible model is giving Bayantel subscribers the added benefit of "mobility" which means that landline subscribers can bring their landlines, just like a wireless handset.

"The traditional method of rolling out a mobile service is having base stations all across the country and having a separate cellular network. We believe there are other alternatives, particularly given how the National Telecommunications Commission (NTC) approaches new technologies, with new guidelines firming up on the different ranges for wireless broadband, wireless local loop, and 3G," he said.

The reason for the low levels of additional investments required is the fact that Bayantel’s planned CMTS service will utilize the existing landline network. "A lot of the costs are already there, particularly of the switching or routing based on MTLS, the back-haul is there," Fafunwa explained.

Over three years, the investment needed is estimated at P500 million, to be sourced internally although the company is open o the possibility of entering into a partnership with other firms.

"Everything we’ve done so far has been internally funded, which has been the approach for the past three years. But there is always the possibility that we will find an interested party who wants to join us in a particular aspect of the business or make an investment that supports a particular aspect of the business," he said.