Globe Telecom Inc. said its board has approved an additional capital expenditure of $300 million for network expansion.
Globe President and CEO Ernest Cu said that the amount will be used in the company’s network expansion – consisting of $160 million for mobile; $50 million for corporate data; and, US$90 million for broadband, the company said in a recent disclosure to the Philippine Stock Exchange.
The additional network spending will bring 2016 capex availment to $1 billion while the capex cashflow will range between $750 to $810 million depending on the final network build completion in the fourth quarter of this year.
Prior to the new approval, Globe’s 2016 capex availment and capex cashflow were the same at $750 million.
In line with Globe’s vision for the Philippines to become an admired nation for having first world Internet connectivity, the company is kick-starting an additional mobile capex program for more deployment of LTE services using the 700 megahertz (MHz) and 2600 MHz frequencies, increased 3G capacities and further expansion of mobile coverage.
Consistent with the company’s commitment to the government for the improvement of mobile internet services and expanding LTE coverage across the country, Globe plans to roll-out additional 700 LTE 700 sites, close to 2,700 LTE 2600 sites and additional core and transport upgrades.
Globe has started the deployment of fiber broadband technology that will provide ultra-fast Internet access to two million homes in 20,000 barangays by 2020.
Globe is investing to augment the capacity of its corporate data network to address the bandwidth requirements of enterprise clients for the use of various data solutions to improve business efficiency, enhance productivity, and boost competitiveness.
“Guided by our new purpose of ‘creating a Globe of Good’, the Company is aggressively fast-tracking a multi-pronged network infrastructure and capacity expansion build to provide our customers a better internet experience,” Cu said.