PLDT looking to save PHP8bn in CAPEX through Digitel purchase

13 Mar 2012

The Manila Standard Today quotes Philippine Long Distance Telephone Company (PLDT) president Napeleon Nazareno as saying that his firm will save PHP8 billion (USD187.5 million) in CAPEX in 2012, and improve its overall services, by maximising synergies arising from its recent acquisition of Digital Telecommunications Philippines (Digitel) and its mobile arm Sun Cellular. Nazareno has lowered PLDT’s capital expenditure for the current fiscal year to PHP38 billion, from the earlier projected PHP46 billion, in part a result of a decision to share cell sites and other facilities between PLDT’s mobile arm – Smart Communications – and Digitel’s Sun Cellular. The president notes however, that the revised CAPEX is still higher than the PHP31 billion spent in fiscal 2011.

PLDT finalised the takeover of Digitel in October last year and work to amalgamate and synchronise their respective operations are ongoing. ‘We are doing a lot of CAPEX optimisation and identifying cost efficiencies,’ Nazareno said.

‘We have so far identified 160 cell sites for co-location and 850 sites for consolidation of planned and existing Smart and Sun facilities while 22 sites have been identified to co-locate Digitel operations in PLDT facilities to free up rented properties,’ he added.