Globe eyeing new products to ‘regain momentum’

According to the company’s top official, GLOBE Telecom, Inc. plans to introduce new products and services as it prepares for intensified competition in the telecommunications sector.

“Globe is stepping up its efforts, so you will start to see more aggressive offers that will give the people more value for their money,” Globe President and Chief Executive Officer Ernest L. Cu said in an e-mailed statement on Wednesday.

The company said the new offerings it is set to introduce should “strengthen its leadership in the mobile sector and regain business momentum despite mobility restrictions, as it continues to gear up for increased competition.”

“The company is determined to reinvent its products and services while embarking on a sustained network upgrade and expansion,” Globe added.

Credit rating agency Fitch Ratings has said Globe Telecom and PLDT, Inc. would be “accelerating their network rollout in mobile and fiber broadband” because of the entry of the third telco player, DITO Telecommunity Corp., which targets to capture 30% of the telecommunications market.

According to a technical audit report by R.G. Manabat & Co., DITO is currently capable of serving 37.48 percent of the country’s population.

By the end of its fifth year of commercial activity, the third telco has committed to covering 84 percent of the population and providing internet speeds of at least 55 megabits per second.

“Certainly, at this point, we don’t see that (effect) yet given the vast disparity in coverage between them (DITO) and the two incumbents,” Mr. Cu said.

DITO, according to Globe, only operates on fourth-generation (4G) and fifth-generation (5G) networks “that cater primarily to data services rather than voice calls and SMS.”

According to the group, the Ayala-led telco aims to “own the most extensive 5G coverage worldwide,” with further releases planned in Europe and North America.

Globe revealed last week that its attributable net income for the first three months of the year was P7.31 billion, up 11% from P6.58 billion in the same timeframe in 2020.

Its overall revenue for the first quarter increased by 4% to P42.85 billion, up from P41.19 billion in the same time last year.

Revenues from mobile, home broadband, corporate data, and a fixed-line voice rose 2.5 percent to P37.81 billion, up from P36.88 billion previously.

On Wednesday, Globe Telecom shares fell 1.67 percent to P1,829 per share.

Source: BusinessWorld

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