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Telecommunications giant PLDT Inc. plans to spend up to P92 billion in capital outlays in 2021 to meet the “surge in data demand” and heed the government’s call to “lift” the local telecommunications industry and provide services that meet global standards.
Alfredo S. Panlilio, the company’s chief financial officer and president of the Smart Communications Inc. subsidiary, said his group is increasing its capital expenditures (capex) by as much as 25 percent in 2021 to expand its fixed and wireless networks.
“With the increasing demand for data, we are prepared to invest between P88 billion and P92 billion next year to meet the requirements of all our fixed line and mobile customers. Delivering a good customer experience continues to be our ‘North Star’, as our goal is to elevate PLDT and Smart to the level of global carriers, ”he said.
PLDT has scheduled roughly P70 billion in capex this year, but Panlilio noted that his group may “end this year with roughly the same level of capex” in 2019, when it spent P73 billion to modernize its networks.
In the last five years, PLDT has invested P260 billion in its networks, with its wireless network now reaching 96 percent of the population and covering 95 percent of the country’s cities and municipalities, while its fiber infrastructure now runs 422,000 kilometers.
“We want to compare ourselves, not only with local competition, but with our neighboring countries like Thailand and Vietnam, as we want our network performance to be on par with global companies,” said Panlilio. “This is our aspiration, to really bring that level of service to the Filipino people.”
Last month, PLDT and the Smart subsidiary said they are increasing their capacities to meet the growing demand for internet connectivity, and their boss said the group will prioritize 5G and the addition of more cable landing stations to increase capacity.
Manuel V. Pangilinan, who chairs both companies, said the two firms consider themselves an “integrated network” that can “invest in international connectivity like no one else can.” These, he explained, include investments in submarine fiber cables and 5G technology.
Its backbone currently has a capacity of 55 terabits per second, and with work underway, PLDT will be able to increase it by another 37 terabits per second. This increased capacity will help the telecommunications group meet the demand for services such as 4G, 5G and fiber to the home.
President Duterte, during his State of the Nation Address this year, threatened incumbent telcos with a government takeover if they fail to improve telecommunications services this month. Duterte did not provide a benchmark for how much improvement he wants to see from the two starters.
