Globe Telecom to finish modernization in early ’13

Ayala-led Globe Telecom Inc. expects to complete its full network modernization by the first quarter of 2013, leading to fewer dropped calls and prompt delivery of short-messaging service (SMS) messages for subscribers.

In a statement on Monday, Globe president Ernest Cu said the company’s $790-million network expansion and IT transformation would also mean faster Internet connection speeds for users.

Taking a shot at the competition, Cu said: “Others mask modernization with simply a business-as-usual change-out of old equipment. At Globe, our transformation is very different because it is indeed building a brand-new network.”

He said the company’s modernization program was not a “mere upgrade” of existing equipment. He said Globe was building an entirely brand-new network by replacing all old equipment to ensure that the company was ready to cope with the demands of its users.

“Globe has effectively future-proofed the network with thrice the number of 3G base stations for better call quality and pervasive coverage,” Cu said.

He said the company would also launch its commercial long-term evolution (LTE) mobile services this month, delivering a significant jump in Internet connection speeds for users who can afford it. LTE is the newest mobile data technology being adopted by telecommunications companies around the world. It offers faster and more reliable connection speeds for subscribers, but, as with all new systems, is still more expensive to use than older technologies.

Globe’s rival Smart Communications launched its own LTE service last month, charging subscribers P3,500 a month for 10 gigabytes of usage. Globe plans to launch its own LTE service this September for as low as P1,799 a month for a still undisclosed amount of data usage.

Cu said the company’s modernization was in line with efforts to keep up with the demands of consumers who have increased the use of the Internet on their mobile phones.

“In the Philippines, as we have said many times before in the past, the networks were actually built for text traffic and not for mobile Internet. SMS networks are characterized by very thin backhaul capabilities,” Cu said. “Very fast mobile Internet almost requires purely fiber optics in terms of backhaul because of the tremendous amounts of data traveling from the base station all the way to the core and out on the Internet.”