The Market Monitor Minding the Nation's Business
Telecommunications giant Globe Telecom was named among Asian companies with the most active capital investment in Asia as it posted one of the highest capital expenditure (capex)-to-revenue ratio among telcos in the region in the past two years showing how aggressive the company has been in upgrading and enhancing its network infrastructure.
Globe has a capex-to-revenue ratio of 28percent in 2015 and 27 percent in 2014 while the local telecommunications industry averaged 23percent in both 2015 and 2014. By comparison, only China’s capex-to-revenue ratio of 36percent in 2015 and 33percent in 2014 exceeded those of Globe Telecom based on the published financial statements online of publicly-listed telcos in the region which were compiled and computed per country.
Other Asian economies registered lower ratios in 2015 and 2014 with Singapore at 26percent and 22percent, respectively; Indonesia with 24percent and 26percent, respectively; Thailand with 23percent and 21percent, respectively; India with 17percent and 16percent, respectively; Taiwan with 14percent and 16percent, respectively; Hong Kong with 13percent and 14percent, respectively and Malaysia with 13percent and 12percent respectively.
“Over the past several years, we have invested in our network to enable our customers to enjoy their digital lifestyle and empower businesses with digital capabilities, enhance their productivity and make globally competitive,” Globe President & CEO Ernest Cu said.
“We are moving to enhance the internet experience of the Filipino people and position ICT as a major development contributor in the Philippines,” Cu added.
In 2011, Globe embarked on a $700 million network modernization program that provided among others the adoption of latest telecommunication technologies for seamless customer experience and increased data capacities.
The modernization initiative, completed in 2014, delivered the most advanced network infrastructure in the country, putting in a brand new access, transport, and core network nationwide. As part of the initiative, the company also completed a nationwide rollout of 4G network, using the HSPA+ technology.
Since 2011, Globe has invested over $2.2 billion in its network and IT infrastructure to enhance the telecommunication provider’s data network capacities.
In November 2015, Globe signed a five-year partnership deal with Huawei Technologies in a bid to further enhance and expand the provider’s mobile network. The partnership involves planning and design of a mobile broadband network utilizing latest state of the art technology trends.
The project also involves the creation of a “mobile innovation center” to yield innovative products and solutions that would ensure Globe maintains its competitive edge and leadership in the intensely competitive local telecommunications industry.
To effectively roll-out its network capacity building program, Globe is seeking Open Access legislation for the telecommunications industry to help mitigate bureaucratic red tape and other political hurdles that stand in the way in the deployment of telecommunication and broadband infrastructure.