Olongapo Telecom & Information Technology

Monday, October 22, 2007

Regulator to issue rules on new telco technology

THE National Telecommunications Commission (NTC) may issue new rules on next generation network (NGN) interconnection among telecom companies, an official of the regulatory agency said.

“There is a need to create guidelines because of the interconnection issues that may arise [in the future],” Edgardo V. Cabarios, NTC common carrier and authorization department director, said.

NGN is the latest technology for voice and multimedia communications based on open architecture design made possible through Internet protocol (IP) technology.

Telcos like Philippine Long Distance Telephone Co. (PLDT), Globe Telecom Inc. and Digital Telecommunications Philippines Inc. are aggressively rolling out NGN technology to improve their services.

Cabarrios said the migration from traditional communication networks to NGN can enhance telcos’ voice and data services as well as allow them to expand their value added service offerings like broadband and Internet protocol television (IPTV).

“One network can provide more services,” he said.

PLDT had announced that it will spend about P7.7 billion to finance its NGN and broadband expansion.

For this year, the country’s largest telco will install 600,000 to 700,000 NGN lines nationwide from an initial rollout of 150,000 in 2005. “Our ability to stay ahead in the broadband revolution is particularly important for the fixed line business as it enables us to manage the transition from traditional voice services to other revenue streams that can deliver growth for the future,” Napoleon Nazareno, PLDT president, had said.

“We expect NGN to have stronger contributions in 2007 and the coming years,” he added.

Gerardo C. Ablaza Jr., Globe president and chief executive had said the bulk of the company’s capital expenditure amounting to $350 to $400 million will fund future growth areas such as broadband and wireless business.

“Capex for 2007 will grow relatively [from] 2006 as we invest in broadband for future growth,” he added.
--Darwin G. Amojelar - manila times

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