Globe mulls data services facility

Leading mobile phone service provider Globe Telecom plans to put up a new facility for its data co-location or hosting service by the second half of next year as the Ayala-owned firm expects growth in its data services to double in 2002.

Globe senior vice president Gil Genio said following the launch of eLounge Center that demand in data services will increase next year as the entire industry looks forward to the recovery of the economy.

"We see a tremendous area of opportunities in data services because we believe the future belongs to data," Genio said.

He said Globe’s data business grew around 30 percent to 40 percent in 2001 from the previous year. The company expects the growth rate to double next year.

During the company’s third quarter investors’ briefing, Globe reported that its wireless data services presently accounts for 25 percent of the company’s total business.

Genio said many firms are expected to proceed with their IT investments that were postponed this year, particularly after the Sept. 11 terrorist attacks on the United States, due to the economic difficulties. He said this would mean stronger business for the industry as the need for higher bandwidth resources grows.

Genio did not say how much investment the company would be prepared to pour into the planned co-location facility. "It will be a significant amount. Definitely, this is not a small expense. We already have an existing co-location business as a number of our clients are co-locating their servers with us," he said.

Globe’s existing hosting services are currently dispersed in areas where the company operates. The new facility that Globe is planning to build next year is intended to "concentrate in one place" the company’s co-location service.

Meanwhile, Touch Mobile, Isla Communications Inc.’s (Islacom) newest digital prepaid mobile phone service, now has 70,000 subscribers since it was launched in September.

Genio, who is also Islacom’s chief operating officer, said that the number is expected to grow further next year as it had just offered a "good deal" to Islacom’s existing prepaid subscribers.

As of Sept. 30, Touch Mobile registered 11,343 subscribers. "We are pleased with the take up. It was as expected. Of course, we are very happy considering the tight competition right now," Genio said.

Touch Mobile utilizes Globe Telecom’s global system for mobile communications (GSM) network. Globe officials earlier said that the amount spent by Islacom to develop this voice-guided technology was already included in the $220 million earlier extended by its three shareholders to Islacom.

Of the amount, $70 million had already been put in and the balance is expected to come in soon. Genio said the additional budget will come along depending on the subscriber growth of Touch Mobile.

"We are currently offering our Islcom pre-paid subscribers to transfer to Touch Mobile. We are giving them a good deal by giving them Touch Mobile subscriber identification mode (SIM) cards," Genio said. – Mary Ann Reyes