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PLDT and Digitel Synergies will provide savings and revenue growth

The recently completed PLDT review of Digitel’s operations brought to fore a number of areas for synergy, especially in the area of network, which will provide opportunities for savings in both capital expenditures and operating expenses as well as potential for incremental revenue generation. To date, those that have been identified are as follows:
  • Capital expenditure optimization and cost efficiencies which are expected to reduce capital expenditures by P8.0 billion for 2012;
  • Site sharing/site consolidation which are expected to generate savings in excess of P500 million in annual operating expenses when fully implemented;
  • National roaming which will increase Sun’s 2G coverage from 59% of all cities and towns to 100% and Sun’s 3G coverage from 6% to 60%;
  • Access consolidation and transport integration/expansion which will upgrade the service quality of Digitel’s fixed line subscribers;
  • Core optimization which should improve Internet experience for Digitel subscribers; and,
  • Service resiliency and diversity which will further strengthen the PLDT Group’s network in terms of reliability and service continuity.
Clearly, Smart and Digitel combined have the largest and most pervasive network in the country with 10,482 cell sites, 14,876 cellular/mobile broadband base stations and 4,918 fixed wireless broadband-enabled base stations.

Other areas that are being explored include marketing and distribution. Smart has in fact just launched various "tri-net” products that offer "all-net” SMS and "tri-net” call buckets in various durations and denominations.
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"PLDT and Digitel Synergies will provide savings and revenue growth" was written by Mary under the Business category. It has been read 1443 times and generated 0 comments. The article was created on and updated on 06 March 2012.
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