Digitel Earmarks $200M For Mobile Op In 2006

Digital Telecommunications Philippines Inc. (DGTL.PH), or Digitel, on Wednesday said it has earmarked about $200 million in capital spending for its Sun cellular operation next year.

The capital expenditure program will enable Digitel to accommodate an estimated 10 million mobile phone subscribers by end-2006, said Digitel in a disclosure to the stock exchange.

The amount matches the $200 million Digitel allotted for mobile phone network capacity expansion this year.

"The 2006 budget for capital expenses will be sourced either through foreign- denominated credits, bank financing, or financial leasing," said Digitel.

Digitel is a unit of JG Summit Holdings Inc. (JGS.PH), the investment holding company of Philippine tycoon John Gokongwei. Digitel started offering its cellular service in early 2003 and after nearly two years, it has - with its unlimited text and call offering - taken a small share of a market dominated by Smart Communications Inc., a unit of Philippine Long Distance Telephone Co. ( PHI), and Globe Telecom Inc. (GLO.PH).

-By Micheline R. Millar, Dow Jones Newswires; 632-885-0288; micheline.millar@dowjones.com