MANILA, Philippines – Globe Telecom is seeing continued growth in data services in the country, which is why the Ayala-led telecommunications firm will further boost investments in this segment.
“Data has been impacting all parts of the way we operate everyday, whether that’s business or education and the way we live our lives. So those investments will never stop, it will continue,” Globe’s chief financial officer Alberto de Larrazabal told ANC on Friday.
Globe recently announced that it has raised P10 billion from the sale of preferred shares to help fund capital expenditures this year.
According de Larrazabal, a bulk of its budget will be used to enhance and expand its data services.
“We’re now undertaking on the heels of our network transformation, the implementation of the whole data layer on top of that given how significantly data has been growing with the new technologies that are coming in, specifically LTE. So [these funds] will be principally used to drive that initiative,” he said.
He noted that data services is “a heavy investment-type business” because of the required infrastructure, but stressed its importance in the competitive telecom industry.
For the second quarter of the year, Globe’s mobile revenues surged to P19.3 billion driven by growth in mobile data services, which grew 23 percent to P3.4 billion from P2.8 billion in the first quarter of the year.
De Larrazabal said the growth in data is reflective of the needs in the market and “the general affluence that is coming in because of all these economic gains.”
He added that Globe’s LTE service is still “a work in progress,” and is envisioned to be part of the technology that will serve both mobile browsing and internet requirements for its home-based subscribers.