Globe Telecom 'excited' about investing $790-M in upgrades

Top executives of Globe Telecom Inc., Singtel, Huawei Technologies Co. Ltd, and Alcatel Lucent were in Malacañang Wednesday to personally express to the Aquino administration how excited they are to be part of the country’s economic growth through their $790 million network modernization program.   “The whole economy is doing well, the growth is there, inflation is low, there is investment, the stock market is at its strongest ever. Both (Globe President) Mr. (Ernest) Cu and I are here today to show our commitment to the economy by committing heavily on what the economy needs. It’s an exciting time for us,” said Jaime Augusto Zobel de Ayala, Globe Chairman.   He added that the bulk of Globe’s modernization, which will take place over the next two years, is “unprecedented in the history of implementing a project like this” because it involves the upgrading of Globe’s whole telecommunication infrastructure.   President Aquino noted how crucial telecommunications are to the workings of the economy and especially so for Filipinos in the remotest parts of the country. He thanked Globe and its modernization partners for their confidence in his administration’s efforts in “putting a level playing field” in the local business environment.   “I am pleased that one of the most respected companies in the Philippines has chosen to work with strong, reliable, and world-renowned partners, both Huawei Technologies and Alcatel-Lucent,” Aquino said.   “I met with Huawei during my State Visit to the People’s Republic of China. I am glad to see them partnering with one of the largest and most successful companies in the country. This is truly another reflection of their confidence in the Philippines,” the President added.   With the chairman and president of Globe in the Malacañang visit were Singtel Group CEO Chua Sock Kong, interim Huawei CEO Eric Xu, and Alcatel-Lucent president Rajeev Singh-Morales. Transportation and Communications Secretary Manuel Roxas II was also there to welcome the telecom investors to the Palace.   Changing market, efficiency savings Globe president Ernest Cu revealed to the Malacañang press corps that a key shift in a segment of the local consumer market has taken root.   “For postpaid, the growth is picking up…There is a maybe a shifting sentiment as far as the public is concerned. They want to move into more postpaid plans na. It’s quite an interesting phenomenon that we’re seeing in terms of this high-end prepaid consumers now opting for a committed plan,” Cu said. He explained that the shift is also partly the result of the growing number of smartphones coming into the country, leading to changes in how more Filipinos communicate using their data-heavy gadgets.   Cu said the more efficient operations Globe will have because of its modernization will bring about $170 million in savings over a span of five years, enable the firm to “compete harder and more aggressively in the future, because our operating costs will be lower” and keep it from passing on costs to the consumer. — Rouchelle Dinglasan/ELR/KG, GMA News