MANILA, Philippines - Globe Telecom Inc., jointly owned by conglomerate Ayala Corp. and Singapore Telecommunications Ltd., is spending as much as $400 million to fire up base stations equipped with long term evolution (LTE) technology over the next two years.
Globe president Ernest Cu told reporters the company is spending between $100 million and $200 million this year and another $100 million to $200 million next year to put up LTE-capable base stations.
“For LTE prospective this year, probably $100 to $200 million. For next year, similar amount,” Cu replied when asked how much Globe was investing to fire up LTE-capable cell sites.
The investments in 4G (fourth generation) LTE sites this year, is part of the capital expenditures budget of between $600 million and $650 million for this year.
This year’s capital expenditures would cover transformation initiatives as well as for the company’s data network including LTE as well as fixed broadband.
Globe is now embarking on building more sites, boosting capacity, and enhancing performance after rolling out 9,400 kilometers of additional fiber optic cable and firing up 700 4G LTE sites providing customers with faster mobile browsing experience.
To further expand its coverage across the nation, Globe is also building more 3G and 4G cell sites and expects the total number of stations to exceed 6,500 by the end of the year.
“Our transformation journey does not end with the 3G and 4G technologies. We will continue to improve our network’s infrastructure to accommodate our customers’ fast-paced digital lifestyle needs,” he said.
Cu pointed out that Globe is the first telecom provider in the Philippines to achieve 100 percent 3G coverage for its entire network after the completion of the $700 million network modernization and transformation project last year and now provides its 43 million subscribers with high-speed wireless internet for faster data interchange on their mobile devices.
He said the company also expects to fully equip its network with the more advanced 4G infrastructure, with the HSPA+ technology, by the end of the third quarter.
According to him, the completion would further strengthen the Globe’s capability to provide digital lifestyle experience to its growing subscriber base.
“With a 100 percent 3G network, we now have a robust capacity for high-speed mobile data access. Providing our network with full HSPA+ coverage in 90 days will provide an even faster mobile internet experience. This increases potential for more digital innovation and enhances wonderful customer experience,” Cu explained.
According to Cu, Globe’s $700 million transformation initiative also enhanced in-building coverage in major malls, hotels, hospitals, major highways and airports, further enriching customer experience.
Globe Telecom’s modernized telecommunications infrastructure is expected to underpin the subscriber growth moving forward as smartphone penetration becomes more prevalent. As the company continues to attract high-end customers in both postpaid and prepaid segments, the number of Globe customers using mobile data, currently estimated at around 30 percent of its total subscriber base, is expected to rise even further.