Globe says high capex is vital to fill infra gaps

Globe Telecom Inc. on Wednesday set its capital expenditure guidance at $750 million a year for the next three years, primarily to fill in the network's infrastructure gaps.

The telco expects mobile data business to deliver exponential growth, being the greenfield that it is with a huge potential in the coming years.

"It's a comfortable amount... It's hard to spend $750 million a year. At $750 million, we're really scrambling to make sure we really execute on that," Rizza Maniego-Eala, Globe's newly-appointed CFO said in a briefing with reporters in Taguig City.

Globe has allocated $750 million starting 2016 to for its mobile internet and transmission capabilities, the company said in a regulatory filing on Tuesday.

In a separate interview, Globe Vice President Ma. Yolanda Crisanto told GMA News Online the company is facing difficult challenges that go with an expanding business.

She cited the need to acquire and build new cell sites to meet the infrastructure gap.

"The common wisdom was that the voice and text messaging service was on the wane. As it turned out, voice and text messaging are still growing. On top of that, you have your data service as your greenfield, where the demand is really surging," Crisanto added.

Eala noted the main stumbling blocks to capital spending include site acquisitions, permit approvals, and delays due to bad weather.

"We have to update our five-year plan. We just started with 2016 as the base year. There are a few more alterations to our five-year plan as the market changes," Eala said.

Globe's mobile business, Eala noted, grew by 55 percent in 2015.

"As Globe's smart phone penetration increases, inflows are coming in," she added. – VS, GMA News