AYALA-LED Globe Telecom said on Friday its Board of Directors approved the additional capital expenditure (capex) of $100 milion (P5.06 billion) for this year as part of its plan to strengthen mobile data facilities.
In a disclosure to the Philippine Stock Exchange, Globe said the additional spending will bring its 2017 capex from the initial $750 million to $850 million, “with the additional investment to be spent in the balance of the year.”
The company said the additional investment is set to address the growing demand for quality connectivity in the Philippines as Globe will accelerate and expand its long-term evolution (LTE) services, 3G capacities and mobile coverage.
“We expect to further enhance customer experience as we continue with the aggressive deployment of LTE sites, utilizing the 700 MHz, 1800 MHz and 2600 MHz frequencies to address the growing customer demand for bandwidth amid the swelling consumption of multi-media content,” Ernest Cu, Globe president and chief executive officer, said.
“Everything we do right now is geared towards data. That’s the growing part. As you know, SMS (short messaging service) is declining,” Cu said earlier.
Globe last month secured a $155 million term loan facility with Metropolitan Bank & Trust Company to help finance its capex for this year.
Globe noted that its data-related revenues accounted for 53 percent of consolidated revenues in the first half of 2017. It said total data revenues reached P33 billion in the first six months, up 10 percent from a year ago, while its mobile data traffic in the period surged 85 percent year-on-year.