GLOBE SETS $850-M CAPEX FOR 2018

AYALA-LED Globe Telecom has set a capital expenditure (capex) program of $850 million (P43.7 billion) for this year, with its eyes set on improving data services in the country.

said its board had approved a capital expenditure budget of $850 million for 2018, consistent with

Ernest Cu, Globe president and chief executive officer, said the company was eager “to expand its data network and address the surge in customer demand for on- demand video content.”

“Majority of the company’s capex for 2018 is geared to meet customer demand for more bandwidth-intensive content, which, in turn, will support the revenue momentum of our data-related services”, he added.

Cu said Globe continues to allot higher capital spending since 2015, averaging 31 percent annually on a capex-to- revenue ratio basis, to bolster its plan to lead the local telco industry in the Philippines.

“We continue to be efficient in our network build, evidenced by the superiority of our mobile network, in terms of higher 3G and LTE availability both on a regional and nationwide basis,” he said.

Aside from its data network expansion, the company’s capital spending will also focus on the deployment of massive MIMO (multiple output, multiple input) technology to further gear up its LTE network.

Globe explained that MIMO “increases the capacity of a wireless connection” while allowing more users to utilize broadband services.

Globe posted a nine- month profit in 2017 of P13 billion, up 11 percent from the previous year, boosted by its quality data- related businesses.

Mobile data service revenues as of end-September were up 20 percent at P31.3 billion, while home broadband business jumped 8 percent to P11.7 billion.