PLDT to spend bulk of P29-B capex on broadband

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) is spending about two-thirds of its P29-billion budget for capital expenditures next year for its growing broadband business.

PLDT President Napoleon Nazareno said in an interview on the sidelines of the awarding of PLDT HOME’s Most Loyal Connections Contest and Iconic Years Video Competition in connection with the company’s 85th year anniversary celebration that next year’s capex is the same level as this year. “More or less it will be the same level as this year at P29 billion,” Nazareno said.

Of the total amount, he said about 65 percent would be allocated to expand its broadband business while 25 percent would be used to further expand PLDT’s fiber optic network by about 10 percent next year.

PLDT?s total fiber footprint as of end-September stood at more than 75,000 kilometers including 7,200 kilometers of international submarine fiber and over 4,000 kilometers of domestic submarine fiber.

Consolidated capital expenditures for the period amounted to P14.9 billion as of end-September as the PLDT Group continues to fortify its network with a P29-billion budget despite having completed its P67.1 billion two-year network transformation program ahead of schedule.

Last August, PLDT completed a P2.5-billion expansion project involving the installation of over 5,000 kilometers of fiber optic cables to support the aggressive roll-out of high-speed data services on its fixed and mobile networks.

PLDT Chairman Manuel V. Pangilinan is confident that 2013 would be a turnaround year for the country’s largest telecommunications provider as it booked a two percent increase in net income and revenues in the first nine months of the year.

PLDT booked a two-percent increase in net income to P29 billion from January to September this year. The increase was traced to the P2-billion gain from the sale of SPI Global that was offset by P2.4-billion net foreign exchange and derivative losses and the P1.3-billion adjustments in Philippine Accounting Standard (PAS) 19.