At its annual shareholders’ meeting on Tuesday, the telecom sector’s newest entrant said it would continue laying down the foundation for its Internet services as it works on turning a profit in the next few years.
“We have 48,000 broadband subscribers now. We are targeting much more this year, hopefully double,” Liberty Telecom chairman Ramon S. Ang said.
The company, according to Ang, currently has 400 cell sites in Metro Manila and nearby areas. By the end of the year, he said another 200 would be installed to ensure full coverage in Metro Manila.
“We sell our services only in areas where our signal is strong,” the company said, noting that this would ensure that all of its users would be satisfied with its services.
Each site will cost around $200,000, for a total cost of $40 million.
To fund this, Ang said the company would raise as much as P3.6 billion in fresh funds through the issuance of new shares, which will be subscribed to by Liberty Telecom’s major shareholders, SMC and partner Qatar Telecom.
Ang, who sits as president and chief executive officer of Liberty Telecom parent SMC, said the company would focus on expanding its broadband business. The company offers home Internet plans using wireless interoperability microwave access (WiMAX) technology.
Ang earlier said the SMC group wanted its telecom business to compete in all areas of the industry such as voice and text messaging services, an area currently dominated by bigger players Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom.
Its expansion into other services, however, has been deferred due to delays in the government’s auction of new radio frequencies.
Speaking to reporters at the sidelines of the company’s annual meeting, Ang said he was confident Liberty Telecom would become a strong contender in the country’s competitive telecom sector.
“I think having a third player in the industry is good for consumers. We will become the third,” Ang said.
