The multi-million race among network providers to supply 3G network technology to local operators has roared off to a blazing start with Finnish telecom giant Nokia clinching the first deal of the year with leading carrier Smart Communications.
Smart announced last January 18 that it has signed an agreement with Nokia for the supply of 3G networks technology equipment and services. It did not disclose how much the deal was worth.
The contract with Smart is seen as a crucial win for the networks division of Nokia as it steps up its market battle against rivals Ericsson, Alcatel, and Huawei in supplying 3G infrastructure to local operators.
So far, Nokia has maintained a stranglehold on Smart as the Finland-based mobile phone maker has been the sole network supplier to the PLDT-owned mobile subsidiary since 1998.
The agreement covers the supply of 3G radio access and core network equipment including the Nokia High Speed Downlink Packet Access solution, 3G upgrades to the existing circuit and packet switched networks, and related network services.
3G network infrastructure amount to millions of dollars as this represents an upgrade to the current 2G mobile telephone technology. 3G technology allows high-speed data communications and mobile multimedia services such as video conferencing, audio streaming, and mobile Internet.
The National Telecommunications Commission (NTC) awarded the first four 3G licenses late last year to Smart, Globe Telecom, Digitel, and Connectivity Unlimited Resources Enterprise Inc. (CURE).
"As of today, deliveries of equipment and services are underway. The investments under this contract will allow us to establish quality nationwide 3G coverage in the shortest possible time," Napoleon Nazareno, Smart president and CEO, said in a statement.
Nazareno added that Smart has already been testing a number of 3G cellsites and that 3G content such as streaming video clips can already be previewed at demonstrations in selected Smart wireless centers in Metro Manila and Metro Cebu.
Last December, Smart demonstrated its readiness to offer a full-range of 3G services in a live demo at an international conference in Cebu.
During the demo, the company also conducted an international roaming call between Smart and Telecom Italia Mobile, the first such completed attempt in the Philippines.
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