Globe expects sustained growth in broadband segment

MANILA, Philippines - Ayala-led Globe Telecom Inc. expects to sustain the strong growth of its consumer broadband business amid the rising demand for Internet connectivity and the burgeoning shift to a digital lifestyle.

Gilbert Simpao, senior vice president for consumer broadband business at Globe, said broadband is one of the fastest growing business segments and remains a key growth driver for the company.

“We are confident that the brand will sustain its growth trajectory moving forward as we continue to develop innovative and relevant products and services in line with our commitment of enriching our customers’ digital lifestyle whether they are mobile or at home,” Simpao said.

Broadband revenues jumped 22 percent to P12.7 billion last year from P10.4 billion after its broadband subscriber base surged 37 percent to 2.8 million from two million.

Globe reported a 16 percent increase in the subscriber base for fixed broadband and 42 percent for wireless broadband.

According to Simpao, impressive revenue performance resulted from the continued aggressive acquisitions campaigns and new competitive bundled plans launched throughout the year.

Simpao cited the introduction of more affordable products and competitive tablet bundles throughout the year and the expanded pervasiveness of the fixed and wireless broadband network stimulated the robust performance of our broadband business last year.

Globe continued to introduce innovative content offers and various device plays to remain relevant to customers.

For this year, Globe has spending $850 million for its capital expenditures including the $200 million carry over from last year’s budget.

Of the $650 million fresh allocation for this year, approximately 75 percent of the total amount would be related to data-related projects for Tattoo long term evolution (LTE) and Tattoo Home Broadband.

The remaining 25 percent would cover investments in new platforms and business support systems in line with product innovations, store deployment, and other corporate requirements.