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TO MEET BANDWIDTH DEMAND

Globe earmarks $850M for capex in 2018


Globe Telecom Inc. is spending $850 million this year to improve its internet services in the country.

In a disclosure to the Philippine Stock Exchange on Friday, the Ayala-led telco said its board of directors approved the company’s capital expenditure (capex) budget of $850 million for 2018, which is the same level as last year.

Globe said its sustained level of capital spending is aligned with the company's vision to improve internet services in the Philippines, "with the goal of becoming an admired nation for having first world internet connectivity."

“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”, Globe president and CEO Ernest Cu said.

Cu said Globe has progressively increased its capital spending since 2015, averaging 31 percent annually on a capex-to-revenue ratio basis.

He added the capital spending for the year would finance the company’s commitment to provide fast internet service to two million homes by 2020.

A good portion of the company’s capex will also be utilized for the deployment of massive MIMO (multiple-input, multiple output) technology to expand and enhance its LTE network.

Globe said the MIM technology enables a mobile network to multiply the capacity of a wireless connection without requiring more antennas, increases wireless throughput, accommodating more users at higher data rates with better reliability while consuming less power.

In the case of home broadband, speed and range benefits of MIMO technology allow customers to have reliable data connection especially since more and more customers are now using video streaming services, Globe said. —Ted Cordero/JST, GMA News

Tags: globetelecom
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