Monday, June 14, 2021

P19B in Capex Spending: Globe exceeds network builds, modernization target

BACOLOD. Globe Telecom Inc. officials led by its president and chief executive officer Ernest Cu (lower left) during the Globe First Quarter Virtual Media Briefing on Friday. (Contributed photo)

AS THE country continuously battles against coronavirus disease (Covid-19) pandemic, telecommunications giant Globe Telecom Inc. has assured that it remains unwavering in its commitment to serve and support its customers in order to mitigate the impact of the health crisis.

Globe, during its First Quarter Virtual Media Briefing on Friday, May 7, 2021, announced that it has put in place comprehensive initiatives to keep customers connected and safe with its digital channels such as GCash, GlobeOne, TM and Globe At Home apps available 24/7.

The firm is likewise ramping up new products and services beyond telco like KonsultaMD, HealthNow, GInsure and PureGo, among others, in order to help Filipinos with their needs.

In the first quarter of the year, the company spent a total of P19.1 billion in capital expenditure (Capex), exceeding last year's spending by 79 percent.

This capex investment represents 51 percent of gross service revenues and 105 percent of Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda).

Around 91 percent of the investment went primarily to data-related requirements to support the fast-growing data demand and provide a superior data customer experience.

"Globe's continuous modernization of its network to make 5G as well as fiber technology available to more customers nationwide, is part of its effort to help the country achieve a #1stWorldNetwork," it said, adding that "this also proves the company's ardent support of the United Nations Sustainable Development Goals (UN SDG) particularly the UN SDG No. 9, which highlights the roles of infrastructure and innovation as crucial drivers of economic growth and development."

Globe also reported that as of end-March 2021, it built a total of 318 new cell towers, 152-percent higher versus the same period last year.

Total builds for wireless expansion which includes both 4G LTE and 5G reached 4,210 sites in the first quarter of 2021 or up by 106 percent from a year ago.

It has also installed over 287,000 high-speed lines reflecting a 212-percent increase from the first quarter of last year.

Globe's steady investments in network upgrades and infrastructure development, provided customers with better mobile data experience, the firm said.

This was proven by Ookla®’s Q1 2021 Speedtest data1, naming Globe as the Philippines' most consistent network with a nationwide mobile Consistency ScoreTM2 of 70.43, ahead of the competition.

Ookla®'s Q1 2021 analysis also confirmed that Globe is the leader in 10 out of 17 regions in terms of mobile median download speed, solidifying its lead over the competition, it added.

The company also reported that as the pioneer and leader of 5G technology in the Philippines, Globe's 5G network now covers 84 percent of Metro Manila, expanding to a total of 1,383 sites including Bacolod, Boracay, Cebu, Iloilo, Cagayan de Oro and Davao as of end-March this year.

Globe has also made its 5G service available abroad with the launch of its 5G service in Thailand, United Arab Emirates, Vietnam, Saudi Arabia, Singapore, Hong Kong

and Kuwait in the first quarter of the year.

It is likewise set to launch its 5G Roaming services to more international destinations across Asia, North America, and Europe in order to extend 5G connectivity for Filipino workers and travelers.

Globe Telecom Inc. president and chief executive officer Ernest Cu, who spoke at the briefing, said despite the resurgence of Covid-19 cases in the country and the lingering uncertainties from the pandemic, they are encouraged by the improvements in Globe’s first-quarter results.

Cu said that looking ahead, they believe that Globe is well-positioned to provide more digital solutions and innovative offers to make its services more relevant to its valued customers, especially during this time of crisis.

"Our 5G and fiber rollout, as well as the continuous upgrading of our network, will remain our utmost priority, as reliable connectivity is indispensable, both to overcome the pandemic and help fuel the recovery of the country's economy," he added.


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