To improve its internet services in the country, Ayala-led Globe Telecom Inc. is set to spend $850-million (approximately Php42-trillion) as the company’s capital expenditure (CapEx) budget this year, according to a GMA News story.
Globe President and CEO Ernest CU said the majority of the funds will be used to meet the customer’s demand for more bandwidth-intensive content which will support the revenue momentum of their data-related services.
He added that the company has progressively allotted higher capital spending since 2015 which averages 31 percent annually on a capex-to-revenue basis; saying: “We continue to be efficient in our network build, evidenced by the superiority of our mobile network, in terms of higher 3G and LTE availability both on a regional and nationwide basis.”
The $850M will finance Globe’s commitment to bring rapid internet services to two million homes by 2020.
A part of the CapEx will also be used for the deployment of massive MIMO (multiple-input, multiple output) technology to gear up its LTE network.
The MIMO technology, as per Globe, enables a mobile network to multiply the capacity without the need of more antennas, increases wireless throughput, accommodating more users at higher data rates with better reliability while consuming less power.
Globe’s board of directors approved the CapEx via a disclosure to the Philippine Stock Exchange on Friday.
The million dollar funding aligns with the company’s vision to improve its internet services for the Filipinos and to its goal of becoming an admired nation for having first world internet connectivity.
Globe’s most revenue now comes from its data services which accounted for over 53-percent of the company’s total income in the first nine months of 2017.