Globe reduces capex, focuses on network efficiency

By Francis Allan L. Angelo

Globe Telecom has invested PHP 13.7 billion in capital expenditures (capex) in the first quarter of 2024, marking a 22% decline compared to the same period last year, the company announced.

The reduction aligns with Globe’s strategy to optimize capital deployment and aims to push free cash flows into positive territory by 2025.

Approximately 91% of the capex for the quarter was dedicated to enhancing data services, ensuring customers can access digital services and entertainment seamlessly.

The focus has shifted from merely expanding capacity to optimizing our network investments, according to a press statement from Gobe.

This strategic pivot, initiated in 2023, led to a significant decrease in purchase orders, with only $131 million worth in the first quarter of 2024, representing just 53% of the actual capex.

Despite the reduced spending, Globe continues to expand its network infrastructure. In the first three months of the year, the company constructed 116 new cell sites and upgraded 812 sites to LTE. The deployment of 19,544 fiber-to-the-home (FTTH) lines marks a decrease from the previous year’s rollout, optimizing the use of existing fiber resources.

In addition, Globe increased its 5G footprint, launching 27 new sites nationwide. The expansion brings its 5G outdoor coverage to 98.35% in the National Capital Region and 92.86% across key cities in Visayas and Mindanao.

The efforts are geared towards ensuring top-notch connectivity across the Philippines.

Globe’s commitment to connectivity and innovation aligns with the United Nations Sustainable Development Goal No. 9, which emphasizes the role of infrastructure in economic progress.

The company also secured the top position as the Philippines’ most valuable telecom brand and ranked seventh in the ASEAN region, according to the Brand Finance Telecoms 150 2024 report. Globe achieved an AAA brand strength rating, reflecting its strong market presence and customer satisfaction.

Recent transactions include a series of tower sale-and-leaseback deals, with Globe transferring ownership of 5,216 towers for approximately PHP 67.3 billion, about 69.5% of the total deal value for 7,506 towers sold.

On the data center front, Globe reported progress at its STT Fairview and STT Cavite 2 sites, with operations expected to begin in early and mid-2025, respectively.

Network updates include the activation of a segment of the Philippine Domestic Submarine Cable Network (PDSCN), enhancing connectivity from Luzon to Mindanao. This development is part of Globe’s ongoing efforts to improve its infrastructure across the country.