Thursday, October 20, 2016
Globe Board Approves New Capex of US$300 Million for Network Expansion
The Globe Board of Directors approved new capital expenditure (capex) of US$300 million for network expansion, consisting of US$160 million for mobile; US$50 million for corporate data; and, US$90 million for broadband. Previous to this new approval, the Company’s 2016 capex availment and capex cashflow were the same at U$750 million. The additional network spending will bring 2016 capex availment to U$1 billion while the capex cashflow will range between U$750 – 810 million depending on the final network build completion in the fourth quarter of this year.
In line with Globe’s vision for the Philippines to become an admired nation for having first world Internet connectivity, the Company is kick-starting an additional mobile capex program for more deployment of LTE services using the 700 megahertz (MHz) and 2600 MHz frequencies, increased 3G capacities and further expansion of mobile coverage. Consistent with the Company's commitment to the government for the improvement of mobile internet services and expanding LTE coverage across the Philippines, Globe plans to roll-out additional 700 LTE 700 sites, close to 2,700 LTE 2600 sites and additional core and transport upgrades.
In parallel, Globe has started the deployment of fiber broadband technology that will provide ultra-fast internet access to two million homes in 20,000 barangays by 2020. Lastly, Globe is investing for capacity augmentation of its corporate data network to address the bandwidth requirements of enterprise clients for the use of various data solutions to improve business efficiency, enhance productivity and boost competitiveness.
“Guided by our new purpose of ‘creating a Globe of Good’, the Company is aggressively fast-tracking a multi-pronged network infrastructure and capacity expansion build to provide our customers a better internet experience”, said Globe President and CEO Ernest Cu. “We are leveraging our additional 700MHz and 2600Mhz spectrum by investing heavily on LTE to improve both mobile data and fixed wireless broadband. The Company is now in the best position more than ever to deliver the best video platforms and expand our data services, in line with the future of our business.” “Mr. Cu added.
From a product perspective, data has remained Globe’s catalyst for growth across all the product segments. For the first half of 2016, the Company’s data-related revenues accounted for 50% of consolidated service revenues, up from 37% in the first half of last year. Total data revenues, which consist of mobile data, home broadband and corporate data services, reached Php29.6 billion in the first six months of the year, up 48% from the Php20.0 billion pesos reported last year.