-- PLDT will be first in Philippines with 100-gigabit technology network

-- Ciena project part of PHP67 billion PLDT network upgrade

-- Technology will put Philippines on par with Japan, Singapore

(Adds comments from PLDT and Ciena executives from 3rd paragraph.)

 
   By Cris Larano

MANILA--Philippine Long Distance Telephone Co. (TEL.PH) on Tuesday signed a 1.3 billion peso ($30.9 million) deal with Ciena Corp. (CIEN) to upgrade PLDT's domestic fiber-optic network.

The project will give PLDT the Philippines' first 100-gigabit network, offering increased bandwidth capacity and much faster downloads, and comes as the company been investing heavily in upgrading its network capacity since last year in the hope that broadband services will help drive revenue growth.

The deal with Ciena, which makes products and services used to deliver voice, video and data communications, is part of PLDT's planned PHP67 billion of capital spending on network improvements in the 2011-2012 period, PLDT President Napoleon Nazareno told a news briefing, adding the improvements will also help PLDT's mobile telecommunications units, Smart Communications and Sun Cellular.

When completed, the fiber-optic network project with Ciena will allow PLDT to offer next-generation services such as fiber-to-the-home, which will permit much faster downloads than conventional telecommunications infrastructure, and internet television. The upgrade is expected to be completed in November.

Mr. Nazareno said the project will put its services on par with those available in Japan and Singapore.

Anthony MacLachlan, Ciena vice president and general manager for Asia-Pacific, said PLDT's deployment of 100G technology will put "the Philippines in a leadership position in Asia-Pacific" and allow PLDT to meet growing demand for high-speed data services from both fixed and wireless broadband users.

PLDT's revenue from broadband services rose 34% in the first quarter from a year earlier to PHP5.8 billion. Such services accounted for 13% of the company's total service revenue during the period, up from 11% a year earlier.

Write to Cris Larano at cris.larano@dowjones.com

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