SMC telco completes 50% of infra expansion

MANILA, Philippines - San Miguel Corp. (SMC) subsidiary Eastern Communications has completed a major portion of its infrastructure expansion program to help service the emerging business areas in Luzon and Cebu as well as the growing international market.

Eastern has successfully completed 50 percent of its migration to the next-generation network (NGN) with focus on areas that service business and corporate establishments. It has also installed eight more telecommunications operations centers (TOCs) in Luzon and Cebu as well as upgraded most of its CAN (customer access network) to “all-fiber” to address the growing broadband requirements of the corporate customers.

With its 240-km backhaul completed, Eastern has acquired an additional five gigabit capacity in the Asia Pacific Cable Network (APCN) 2 in 2010. It is also utilizing this infrastructure to better service industrial parks along its route and international network carriers.

Eastern has also successfully activated the country’s first Tier II and enviro-friendly Green Data Center. Client take-up has been impressive, given that the data center is already operating profitably after only four months since its launch.

To supplement these, Eastern has also upgraded its billing and customer service support systems.

Company officials said that worth noting is the quality processes that Eastern employs in the way it expands and enhances its network. After going through extensive audit and assessment, Eastern has been awarded the ISO 9001:2008 certification, the only major Philippine telecommunications company to be given this certification – a significant corporate and industry milestone.

Eastern has invested over a billion pesos for these infrastructure efforts from 2008 to 2010. All funding has been internally generated.

“Through precise and quality infrastructure expansion efforts, Eastern expects to provide even faster and better services to its business customers,” Eastern marketing and business development manager Edwin Domingo said.

SMC’s wholly-owned subsidiary Vega Telecom recently acquired 100 percent of AGN Philippines Inc. (AGNP), a company that owns around 40 percent of Eastern.

ISM Communications Corp., a company controlled by businessman Roberto “Bobby” Ongpin, sold 100 percent of the outstanding and issued capital of AGNP to Vega Telecom following the execution of a share purchase agreement last Dec. 30, 2010.

When asked whether ISM, which owns 77 percent of ETPI, plans to sell its remaining stake to SMC and when, ISM president Eric Recto told The STAR that this matter is still being studied.

Recto, in an earlier interview, said ISM intends to sell its entire stake amounting to 77 percent in Eastern to SMC.

Vega also owns 39.3 percent of Liberty Telecom although there are plans to increase this further to 49 percent.

SMC has also signed a memorandum of understanding (MOU) to acquire a stake in Express Telecommunications Inc. (Extelcom).

SMC, also through Vega, earlier acquired a controlling stake in Bell Telecommunication Philippines Inc. to beef up its telco investments with a cellular network service.

Vega subscribed to new shares of stock of Two Cassandra-CCI Conglomerates, Inc. (TCCI), Perchpoint Holdings Corp. (PHC) and Power Smart Capital Ltd. (PSCL). Through these subscriptions, Vega shall own up to 75 percent of the outstanding capital stock of the said corporations. TCCI, PHC and PSCL collectively own 100 percent of the outstanding capital stock of BellTel.