PLDT allots P26 B for wireless capex

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) is spending P26 billion for the capital expenditures of its wireless business this year amid the segment’s slowing revenue contribution.

The budget allocation for its wireless business accounts for 66.7 percent of the total P39-billion capital expenditures of the PLDT Group for 2015.

In its annual report submitted to the Philippine Stock Exchange (PSE), PLDT said capital spending for its wireless segment would focus on building out coverage, leveraging the capabilities of its newly modernized network and expanding 3G, 4G, and LTE (long term evolution) including its backhaul and wireless broadband networks in order to enhance data transmission capabilities.

PLDT added that it intends to enhance network and platforms infrastructure and systems to support solutions deployment, campaign analytics, and service delivery to enable customized and targeted services.

The company pointed out that it would also further expand mainstream services and integration with the PLDT Group core and transmission network to increase penetration particularly in the provinces to achieve greater business benefits from a closely synergized environment.

The share of the wireless business in the total revenues of the PLDT Group has been declining steadily to 64 percent last year from 66 percent in 2012.

PLDT’s cellular subscriber base through Smart Communications Inc. and Digitel Mobile Philippines Inc. (Sun Cellular) reached 69.86 million last year.

Cellular penetration in the Philippines increased to approximately 114 percent last year from 108 percent in 2013 due to the existence of subscribers owning multiple SIM cards.

On the other hand, the listed telecommunications provider earmarked P13 billion for its fixed line segment accounting for 33.3 percent of the PLDT Group’s total capital expenditures this year.

For its fixed line segment, PLDT said it would continue the build-out and upgrade of broadband data and IP infrastructures, fixed line data services, expanding transmission network, increasing international bandwidth capacity, and network maintenance.

PLDT’s fixed line business offers local exchange, international long distance, national long distance, data and other network and miscellaneous services had a subscriber base of 2.21 million last year.

The segment’s contribution to the total service revenues of the PLDT Group has been increasing to 36 percent last year from 34 percent in 2012 due to the increase in data and other network service revenues in recent years.