Globe borrows P7 B to fund data upgrade

Globe Telecom Inc. has obtained a P7 billion loan from Union Bank of the Philippines for capital expenditures for projects intended to address the consumers’ growing demand for data.

The Ayala- led telco said it signed a 10-year term loan facility with Union Bank. “The loan shall be used to finance the company’s capital expenditures,” Globe said.

For this year, Globe has allotted P35.4 billion capital expenditures, with the bulk to be spent for data-related projects.

These projects include the rollout of LTE ( Long Term Evolution) or the fastest wireless data service commercially available, improving capacity and coverage of 3G and HSPA+ (Evolved High-Speed Packet Access) which is an upgrade to existing 3G technologies, and modernization of fixed line data infrastructure as well as requirements for transmission facilities.

Earlier, Globe also secured a P20 billion loan from Metropolitan Bank and Trust Co. to fund its acquisition of half of the telco assets of San Miguel Corp. (SMC).

Globe and rival PLDT Inc. purchased the telco assets of SMC for P70 billion last May 30.

Following the transaction, Globe and PLDT gained access to frequencies including the 700 Megahertz ( MHz) band which provides wider coverage and better indoor penetrability, previously held but not used by SMC.

Both telcos are already using the new frequencies.

Globe president and CEO Ernest Cu said earlier the telco expects to activate 500 cell sites with the 700 MHz band before the end of the year.

He said Globe would also be using other frequencies including the 2600 MHz to allow Filipinos to have a better internet experience.

Earlier this year, Globe also launched an initiative involving the creation of an internet superhighway by deploying fiber optic cables in 20,000 barangays all over the country to provide faster and more reliable internet access in about two million homes nationwide by 2020.