Modernization centerpiece: Globe starts rollout of fiber optic cable
MANILA, Philippines—Globe Telecom Inc., the country’s second-largest phone company, is laying down 10,000 kilometers of fiber-optic cable this year, as it aims to improve Internet speeds and service reliability for its subscribers across the country.
Following its recent bond issuance that gave the company an additional P10 billion, Globe said it would modernize thousands of its cell sites to cater to the emerging mobile data traffic brought about by the increased use of smartphones in the country.
“This is a far-reaching transformation that would result in vast improvements in Globe customer experience—quick and reliable call connections, instantaneous text messaging, blazing fast Internet browsing and proactively intelligent spot-on customer support,” Globe president Ernest Cu said.
He said that proceeds from the bond offer would all be used for the company’s ongoing network modernization program.
The centerpiece of this modernization is the rollout of 10,000 kilometers of fiber-optic cable in the implementation of Long Term Evolution (LTE) technology that will bring high-speed data to mobile phones and other data terminals.
“We fervently believe that with our comprehensive transformation, which will enable us to serve customers better, Globe is advantageously positioned to become the most preferred brand among telecommunications service providers,” he added.
On June 1, Globe officially traded P10 billion bonds in the organized market via the Philippine Dealing and Exchange Corp. (PDEx). The issuance was priced at 5.75 percent per year for the five-year tenor and six percent per year for the seven-year tenor.
The company said it had opted to issue bonds to take advantage of the availability of cheap funds in the market brought about by low interest rates and benign inflation.
“The P10-billion bond offer is undoubtedly a great investment opportunity. We expect the investment community to aggressively seize the opportunity to benefit from it. I understand that we are already oversubscribed at this point in time,” Cu said.
Globe is owned by Ayala Corp. and partner Singapore’s SingTel group.