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Globe raises capital spending to improve mobile internet services

/ 04:58 PM September 22, 2017

Globe Telecom is increasing its spending this year to improve its mobile internet network.

Globe said in a filing to the Philippine Stock Exchange on Friday that capital spending for the full-year 2017 was pegged at around $850 million, up by $100 million.

“This spend is in line with Globe’s commitment to improve internet services in the Philippines, with the goal of becoming an admired nation for having first world Internet connectivity,” Globe said in its filing.

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The telco said the company is fast-tracking its “mobile capex program, allowing for more deployments of LTE services using the 700 megahertz (MHz) and 2600 MHz frequencies, increased 3G capacities, and further expansion of mobile coverage.”

Lower band frequencies, such as the 700 MHz, would help increase coverage and indoor penetration, which those in higher bands, the like 2600 MHz, address capacity.

“We expect to further enhance customer experience as we continue with the aggressive deployment of LTE sites, utilizing the 700 MHz, 1800 MHz and 2600 MHz frequencies to address the growing customer demand for bandwidth amid the swelling consumption of multi-media content,” Globe President and CEO Ernest Cu said in the statement.

Globe noted that data services remained a growth driver, hence the need to invest more.

For the first half of 2017, the company’s data-related revenues accounted for 53 percent of consolidated service revenues, up from 50 percent in the first half of last year.

The shift to internet services and entertainment options is accelerating as more people acquire data-hungry smartphones, now at about 67 percent penetration in terms of Globe’s subscribers.

Globe’s mobile data traffic was up 85 percent in the first semester. Moreover, its mobile data revenues jumped 13 percent to P20.3 billion during the period.

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TAGS: capex, capital spending, Ernest Cu, Globe, mobile internet, smartphone
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