Globe invests to upgrade Internet service
Globe Telecom, Inc. increased its capital expenditure by 45% to R7.1 billion in the first three months of the year to improve its Internet service.
The telco used the bulk of its capital expenditure for network capacity expansion to address the Filipinos’ growing demand for bandwidth, according to Acting Chief Finance Officer Rizza ManiegoEala.
“As more customers adapt a digital lifestyle, these investments to build our network capacities will provide them with high-speed Internet connectivity consistent with their usage demands,” she explained.
More than 70% of its capex for the first three months of the year went to data-related investments amid explosive growth in the company’s data portfolio.
Early this year, Globe launched another massive infrastructure build to expand its network coverage and capacity for both mobile and wireline using technologies such as 3G, LTE and even Wi-Fi.
The company also plans on creating an Internet superhighway by deploying fiber optics in 20,000 barangays all over the country by 2020 to provide ultra-fast Internet access to around 2 million homes nationwide.
Investments relating to its fiber deployment alone could reach up to $2 billion within the 5-year period.
To implement such network capacities, Globe needs to develop green field sites and increase its cell site density.
However, the company has been facing difficulties in building more cell sites and in establishing right-of-ways in the process enhancing network coverage and capacities. The company needs to secure up to 25 permits with a lead time of at least 8 months before a single cell site could be constructed.
Despite such challenges, “We have earmarked huge amounts of money to support the continued growth in data requirements,” Eala underscored.
“In 2015, we were authorized to spend $850 million on our network infrastructure but only spent $704 million because of the significant number of permits required for each and every cell site, causing tremendous amount of delays. This year, we are committed to spend another $750 million to serve capacity requirements.”