Globe spending $300 M more for network upgrade

MANILA, Philippines – Globe Telecom Inc. is raising its 2016 capital expenditure by $300 million for network expansion.

In a disclosure to the Philippine Stock Exchange yesterday, Globe said the “management is seeking approval from its board of directors for an additional $300 million to be invested for network expansion.”

The Ayala-led telco has earmarked a capex of $750 million or P35.4 billion for this year.

Of the total capex set for this year, the bulk is intended to be spent to boost data capacity for both mobile and wireline using different technologies of 3G, LTE (Long Term Evolution) and WiFi, as well as expand network reach.

Earlier, Globe said it may hike its capex for the year, as it utilizes frequencies it gained access to following the joint acquisition with PLDT Inc. of San Miguel Corp.’s telco assets in May.

Globe has committed to use the frequencies under the three-year rollout plan it submitted to the National Telecommunications Commission.

Globe is currently rolling out the 700 Megahertz (MHz) band which provides better indoor penetrability and coverage.

By the end of the year, Globe expects to activate 500 cell sites with the 700 MHz band.

The telco has also started using the additional allocation in the 2600 MHz and 2300 MHz bands to provide Filipinos a better internet experience.

Earlier this year, Globe also announced it is aiming to create an internet superhighway by deploying fiber optic cables in 20,000 barangays all over the country to provide faster and more reliable internet access in about two million homes nationwide by 2020.