Tags: Internet, Mobile Phone Industry, Technology Industry, Telecommunications
By Alexander Villafania
MAKATI CITY, METRO MANILA – Globe Telecom’s massive $700 million expansion plans are geared towards “future-proofing” the company from an expected growth in data services in the coming years.
But in a country where majority of mobile phone users are still prepaid subscribers purchasing unlimited promos, the big question would be on how Globe would recuperate its investments.
With the Philippines’ subscriber base almost hitting the 100 percent mark, one key concern would be on generating more revenues out of subscribers.
But the challenge is not just recuperating investments but rather getting more mobile subscribers to use services beyond ordinary SMS and voice calls, according to the top executive of Singapore Telecommunications Limited (SingTel).
SingTel owns a major stake in Globe Telecom.
During a rare meeting with the Philippine media, SingTel Group CEO Chua Sock Koong said one of the key factors in generating more revenues out of subscribers is to keep introducing more unique services that would target specific interests.
Such services would not run on older generation networks, which is why a network upgrade is necessary.
Citing SingTel’s experience in the Singaporean market – where telecommunications penetration is hitting well over 100 percent of its 5 million population – Chua said that subscribers are given a wide variety of services that they can select and are willing to pay for.
She also cites that global trends in user content consumption would also influence how mobile subscribers acquire specific services.
In addition, user experience tends to depend on network infrastructure stability, which explains why Globe Telecom needs to essentially overhaul its entire network.
“Mobile Internet is taking off and you’ll be able to use various applications…. I think Globe is doing great to change the way people use the network and it’s incumbent that they provide the best service,” Chua said.
For his part, Globe Telecom President Ernest Cu said that the company is already on its way in its network overhaul.
Recently, the company signed contracts with network equipment manufacturers Huawei and Alcatel-Lucent. Huawei would provide the equipment while Alcatel-Lucent will be the overall project manager for the modernization, which would take about three years to complete.
The modernization project would involve moving towards fiber optics infrastructure to provide 4G and LTE (long-term evolution) capabilities. They would also strengthen business processes within their network, as well as improve billing and services delivery.
Globe’s main rival, Smart Communications and its parent firm Philippine Long Distance Telephone Company (PLDT) are also undergoing their own modernization program reportedly investing around P67.1 billion.
Related stories:
Smart promises to be LTE-ready by mid-2012
Rival telcos Globe, Smart begin iPhone ‘war’
Want the iPhone 4s? Here’s how much it’ll cost you
Smart finally gets iPhone 4S to market
Globe Telecom to invest $790M in network overhaul
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