Globe to build $100-M 3G network

Globe Telecom has committed to invest an initial $100 million on the roll-out of its third generation (3G) mobile communications technology network this year.

The company’s 3G network will cover almost all key cities and municipalities over the next three to five years. "The 3G capital expenditure is actually flexible and depends on the take-up. But we have submitted to the Board of Investments an initial commitment of at least $100 million," Globe president and CEO Gerardo Ablaza said.

Globe has also promised to deliver superior 3G roaming coverage internationally, leveraging its alliance with five other mobile operators in the Asia-Pacific region already commercially offering 3G services.

The National Telecommunications Commission awarded Globe last December a 3G frequency to enable it to offer 3G services. Others that were granted frequencies were Smart Communications, Digitel, and CURE, but several motions for reconsideration were filed by companies that were not awarded bandwidths, including Bayan Telecommunications (BayanTel), Next Mobile, AZ Communications, Multi-Media, and Pacific Wireless. One of these companies will get the last remaining 3G frequency that has not been awarded.

Whether 3G will succeed in the Philippines or not, however, is largely dependent on the cost of 3G handsets and services.

Eight of the largest mobile operators in Asia Pacific are currently working towards bringing down the cost of 3G handsets to make them more affordable to subscribers in the region.

Bridge Mobile Alliance (BMA), a joint venture among eight leading mobile operators in the region – Globe (Philippines), Airtel (India), CSL (Hongkong), Maxis (Malaysia), SingTel Mobile (Singapore), SingTel Optus (Australia), Taiwan Mobile (Taiwan), and Telkmosel (Indonesia) – is investing $40 million over three years to create a shared infrastructure and a common service platform not only to achieve a seamless delivery of cross-border mobile services, but also to bring down cost of mobile services to over 74 million of their combined subscriber base.

Globe now joins BMA members SingTel, CSL, Maxis, Optus, and Taiwan in offering 3G services to customers in the Asia Pacific region. Among the 3G services that Globe will offer initially are video calls and high-speed Internet browsing, downloading, and streaming.

BMA has included as its associate members several technology firms, including Nokia, Ericsson, Motorola, Qualcomm, Axalto, Gemplus, HP, Logrea CMG, and ZTE. "We can leverage our combined subscriber base of 74 million in order to bring down the cost of 3G handsets," Bridge Mobile CEO Patrick Sim said, adding that the success of 3G will depend largely on the affordability of handsets, which are now still in excess of $300.

BMA members said they are working towards bringing down the cost of 3G handsets, possibly to a more acceptable price level of $200 to $250 per handset.

Bridge’s 74 million subscribers should give the critical mass needed to bring down the cost of 3G handsets. "But even before handset prices go down, there are other uses of 3G such as video IDD and public calling booths that are not dependent on mobile handsets," Sim added.

Ablaza said that they have partnered with BMA to provide the company’s over 12 million subscribers with seamless connectivity and convenience when traveling across Asia-Pacific. Globe was also the first to introduce 3G roaming with selected Bridge partners in July 2005.

He said Globe intends to serve the need for connectivity between overseas Filipinos and their families in the Philippines as well as effectively manage and control the service experience of its subscribers when roaming overseas.

Overseas Filipinos can now top-up the prepaid Globe mobile account of their relatives in the Philippines through selected business outlets of BMA members. In the past, such practice was only possible in the originating country, where a prepaid subscriber must carry extra top-up cards, or ask someone in their home country to activate a top-up.