EASTERN Telecommunications Philippines Inc., has doubled its capital outlay this year to P1 billion to finance the expansion of its data and internet services within its existing network.

Mario Locsin, Eastern Communications president and chief executive officer, said at the annual stockholders meeting of ISM Communication Corp., the parent company of Eastern, this year’s capex will be the last major undertaking after the completion of Eastern’s backhaul project.

Last year, ISM invested P473 million for Eastern’s 240 kilometer one-way backhaul infrastructure connecting Batangas and Makati.

The infrastructure, which is now operational, consists of a next–generation data loop serving the Calabarzon area and connecting the National Capital Region directly and redundantly to the international submarine cable facility in Batangas.

At the stockholders meeting ISM chairman Roberto Ongpin announced the appointment of Mario Locsin as new president. He replaces Eric Recto, who is also president of Petron Corp.

Ongpin said ISM is putting on hold its dividend payout as it focuses on financing the acquisition of the two IT firms this year.

"Beyond Eastern , ISM has accelerated its focus on acquisition targets in the IT sector. At this time, we are evaluating two principal prospects. The first is an international stock trading mobile applications provider and the second is likewise an international media technology services provider. Both companies have successful track records and have significant technological innovations that can be leveraged into a critical first mover status in the Philippines" Ongpin said

In 2008, ISM’s total ownership in Eastern Communications increased to of 77 percent after the acquisition of additional 2.65 million Class " A" shares.

Also last year, ISM recorded a net income consolidated with Eastern of P301.1 million out of total operating revenues of P901 million. Of the amount, P120.4 million was contributed by Eastern.

Source: Malaya, Banking and Finance p.A2