Globe goes purely wireless; landline, data services absorbed by Islacom

Globe Telecom has secured the approval of the National Telecommunications Commission (NTC) to merge its wireline and data operations under its wholly-owned subsidiary Isla Communications Co. Inc.

In an Aug. 22 decision, the NTC approved the transfer of the local exchange and wireline data services and their related assets, rights and obligations and liabilities under subscriber contract from Globe to Islacom.

Also approved was the common usage, operations and maintenance of the network elements of Globe and Islacom to effect the smooth transfer of the service and to ensure no disruption in interconnection with other carriers while the transfer is being implemented.

Globe assistant corporate secretary Rodolfo Salalima said the company will undertake other appropriate legal steps to complete the integration of the local exchange carrier and data services under Islacom.

The move is in line with the company’s ongoing efforts to continuously improve the quality of its network services. This will provide former Islacom wireless subscribers access to the superior coverage and service offerings of the Globe network and will result in infrastructure cost savings and reduced operating expenses. This will also allow Globe to improve its market position in the corporate data market.

With this development, Globe will become a purely wireless company. The company, through conglomerate Ayala Corp., acquired Islacom in April 1999 for $14 million.

The company’s wireline data and internet services solution brand GlobeQuest offers an internet data center, international and domestic leased lines and corporate voice solutions such as conferencing and a virtual private network.

Over the years, Globe has established and built a broad platform of operational competencies, enabling the company to now handle some 40 millions calls, deliver over a billion text messages, and activate over 300,000 new subscribers every month.

Globe has over 2,000 cell sites and 27 switching centers operating on 30 megahertz of frequency, providing nationwide network coverage and capacity. The installation of a fiber optic backbone network will complement the existing microwave radio backbone and provide additional support for the company’s wireless and wireline services.

On the back of robust subscriber growth, Globe reported a 43 percent jump in its first half net income this year to P4.4 billion from only P3.08 billion the previous level.

Service revenues, on the other hand, grew to P23 billion as a result of the eight-percent decline in cash operating cost and expenses.

As of end-June this year, the company’s subscriber base reached almost 7.3 million, 34 percent higher than a year ago.