(Telecompaper) Taiwanese PHS operator First International Telecom (Fitel) has been granted permission to upgrade its existing network to XGP (neXt Generation PHS). Fitel applied late last year to the National Communications Commission (NCC) to be allowed to upgrade its network as demand for PHS services in Taiwan has been shrinking and vendors have stopped supplying equipment, The Digitimes reports citing company information. Associated with the upgrade plan, Fitel plans to raise an additional paid-in capital of TWD 5 billion. The company will replace over 10,000 existing PHS base stations in the Taipei, Taichung, and Kaohsiung metropolitan areas with XGP by the end of this year and aims to begin providing XGP services next year. The company is also in talks with Japanese XGP operator Willcom on procuring terminal devices.