040307: Digitel Mobile wants more frequencies

By Lenie Lectura

Reporter

DIGITEL Mobile Philippines Inc. (DMPI), the cellular unit of the Gokongwei group, is eyeing Express Telecom’s unused frequencies to compete head-on with major cellular- phone firms. A reliable source said yesterday that Sun Cellular, DMPI’s mobile-phone brand, informally asked the National Telecommunications Commission (NTC) to recall Express Telecom’s underutilized frequencies and award these to the former should it pursue to file an application for additional frequency spectrum. “They already made a presentation to the NTC. They told the NTC the disadvantage of not having in their possession frequencies under the GSM 900 spectrum,” the source said. But the NTC, the source said, is not inclined to recall the frequencies of Express Telecom just so Sun Cellular can have these. DMPI currently has 17.5 Megahertz (MHz) of GSM1800 spectrum but none on the GSM900 bandwidth. Other cellular firms, such as Globe Telecom Inc. and Smart Communications Inc. have been awarded frequencies on both bandwidths. Globe and Smart have 17.5 MHz and 7.5 MHz under the GSM900 bandwidth, respectively. Under the GSM1800 spectrum, Globe has 12.5 MHz while Smart has 17.5 MHz. Without frequencies on the GSM900 spectrum, DMPI is having difficulty competing with the two major cellular firms, which already corners 98 percent of the wireless market. “DMPI’s network coverage is not as wide as the two other cellular firms because it lacks premium spectrum. Subscribers therefore must wait for needed coverage. The end-result is that consumer is hurt,” the source said. DMPI, the source said, is eyeing 8 to 12 MHZ of Express Telecom’s frequencies. Express Telecom is still operating the old analog mobile system but had been inactive with only 15,000 subscribers registered in 2005. Bayan Telecommunications Inc. has a 47-percent stake in Express Telecom. It said it would not infuse fresh capital to help its partly owned unit.   Express Telecom had plans drawn up in previous years to transform the analog firm into a digital mobile cellular concern by adapting the CDMA (code division multiple access) technology. An initial investment of $20 million would be needed for the conversion process.

http://www.businessmirror.com.ph/04032007/companies02.html