Globe seals network support deal with global telco giants

MANILA, Philippines - Globe Telecom has sealed a deal with two of the world’s leading network support providers for the implementation of its biggest telecom infrastructure rollout to date.

Globe is investing a total of $700 million over the next five years for its network modernization program, touted as the most significant investment of the company over the last two decades. The bulk of the amount will be spent this year and next.

The program includes an all-IP infrastructure, pervasive 3G coverage, double fiber optics capacity, 4G and LTE readiness, and overall quality and resiliency.

The Ayala-led telecom firm has awarded the contract to Huawei Technologies as lead partner and end-to-end network solutions provider. Alcatel-Lucent (ALU) was assigned as project manager and integrator.

Globe president and CEO Ernest Cu said that the next two years will be a critical period for Globe as it executes on its network modernization programs and as it improves its business support systems and processes.

“Our network and lT transformation program is an ambitious and yet necessary undertaking which will provide the platform that will make us even more competitive in this fast-moving market,” he added.

To finance capital expenditures for 2012, including investments related to its network modernization and lT transformation program, Globe is undertaking a P15-billion retail bond program which is expected to provide it with the option to tap the retail market in one or more tranches over the next 12 months.

As registered securities, the bonds will be offered to both institutional and retail investors.

Globe’s total capex for its network and lT transformation program is about $790 million over the next five years, with $530 million to be spent in 2012 and $110 million in 2013. Other capital expenditures for 2012 include provisions for fixed line data investments, DSL capacity upgrades in selected regions, and submarine cable investments.