Globe may end unlimited data plans
GLOBE Telecom may temper its unlimited data offerings on mobile phone to prevent network abuse by unscrupulous subscribers.
“At some point, we would have to follow the American example, or the developed market example. I think, the unlimited plans would have to be tempered because it’s very difficult to keep on investing in the network without getting paid for it,” Enest Cu, Globe president and chief executive told reporters.
Cu said that the existing fair use policy is not enough to protect the company’s network from abuse subscribers.
Globe had said that about 5 percent of abusive subscribers use 80 percent of the available broadband Internet bandwidth in its network.
In a report done by Ovum showed that the unlimited data tariffs remain a major barrier to improved quality of service (QOS) in a number of markets in Asia.
Ovum, however, said that the unlimited plans were the most effective way to charge for mobile data. “As data usage increases, unlimited plans will only lead to the degradation of customer experience. Operators will need to abandon these plans if they are to differentiate themselves based on QOS,” Ovum said.
In order to further improve its network, Globe would be spending $790 million for its five-year massive network modernization and IT transformation program.
The company’s fresh investment is expected to boost voice and data capacity in anticipation of the growing demand for broadband and mobile data use.
“This is an unprecedented undertaking which will set the industry benchmark for the most technologically advanced network that radically enhances customer experience, dramatically increases capacity, and effectively manages cost,” Cu said.
“We are effectively raising the bar of technology and service in the industry to elevate us to par with the world’s most advanced telecom communities and practices,” he added.
Globe has awarded the $ 700 million massive network modernization program contract to Huawei, while Alcatel-lucent would manage the project.