Globe Telecom to rollout $790 million capex program to improve service

Globe Telecom Inc. unveiled Wednesday morning its $790 million-dollar twin programs to modernize its network and install new information technology architecture "to provide subscribers with a more stable and reliable service experience." Network modernization will cost $700 million while the new IT infrastructure will entail $90 million, Globe officials said. Target project rollout time is 24 to 36 months. "This amount is the biggest and most significant investment that Globe has undertaken in the past two decades," the telecom firm said. "As we execute our programs, we will aim for a seamless transition in order to extend our gains and strengthen our position in this intensely competitive market," said Globe president and CEO Ernest Cu in the statement. Globe assured that the network modernization program will translate to "enhanced voice connection and quality, quicker SMS delivery, better 3G coverage and increased network resiliency to reduce network outages." Globe also said the modernized network will be able to handle higher voice and data traffic, which is forecast to increase three-fold to ten-fold over the next five years. The telecom firm expects to save $170 million in operating expenses over the next five years "from reduced power usage, efficiencies from increased fiber optic use, and lower maintenance costs." For the IT transformation program operating expenses savings will be about $10 million "from lower hardware and software maintenance costs and another $10 million from lower capital expenditures." According to Robert Tan, Globe chief technical adviser, said they chose Huawei to provide their information and communications technology solutions and Amdocs to input "customer experience systems innovation." - Earl Rosero/OMG, GMA News