Globe secures P7-B loan for expansion program
Globe Telecom sealed a P7-billion loan from a local bank to partly finance the expansion of its fixed-line and mobile networks to meet growing demand.
Globe said in a stock exchange filing Tuesday that it had signed a six-year term loan facility with Development Bank of the Philippines.
The telco, owned by Ayala Corp. and Singapore Telecommunications, said the loan would partly finance its $750- million capital spending program for 2017.
Among the crucial expenses was the bolstering of its data business. Globe said it wanted to install in 1800 sites equipment that could transmit the 700 Megahertz frequency, efficient at covering large areas and penetrating indoors with high-speed mobile internet.
The 700 MHz was among the frequencies Globe and rival PLDT secured via their joint acquisition of San Miguel Corp.’s telco unit last year.
Those frequencies were not being utilized as SMC was delayed in entering the business after talks with partner Telstra of Australia failed.
In addition to the LTE 700 sites, Globe is also expanding coverage and increasing capacities for 1,000 sites using the 2600 MHz band.
Globe said it also wanted to continue the rollout of its fixed-line data infrastructure for businesses. This year’s projected capital spending figure came in lower compared to the level in 2016, when it spent $772 million.
Globe CEO Ernest Cu said last month the company needed to calibrate its spending plans in an era when mobile internet margins were dropping due to an ongoing “price war” with PLDT.
