Globe revises lower its 2020 capital spending plan

Ayala-led Globe Telecom Inc. said Tuesday it is allocating P50.3 billion for its capital expenditure for the entirety of 2020.

In a statement, Globe said the 2020 capex plan will support the roll-out of this high-speed mobile technology and further expand the LTE network coverage nationwide.

The P50.3-billion spending initiative, however, is lower than its original guidance of P63 billion “given the delays in the rollout during the enhanced community quarantine (ECQ)/modified ECQ period.”

In the first half of the year alone, Globe has so far invested a total of 20.9 billion for its network rollout, 10% higher than last year “as more people and companies rely on strong and stable internet connections, given the prolonged community quarantine in the country.”

The telco said bulk of the capex spending went to data-related requirements, comprising 76% of the total capex spending for the period.

Despite limitations brought about by the community quarantine and physical distancing restrictions, the company said it pushed for the expansion of its 5G coverage in key areas in the metro, specifically in the Makati and Bonifacio Global City Central Business Districts (CBDs), to enable the 5G experience and make it available to its mobile customers by the third quarter of this year.

Globe is the first telco in the country to introduce 5G technology in 2019, and the first company to offer the first 5G capable smartphone in the Philippines early this year. —Ted Cordero/KBK, GMA News