Atty. Froilan Castelo Archives - THEPHILBIZNEWS

Globe sees #1stWorldNetwork in bill mandating new cell sites, fiber lines in subdivisions and housing projects

The Philippine Business and News — Tue, 07 Dec 2021 04:06:45 +0000

Senate of the Philippines (Photo File/THEPHILBIZNEWS/MAS)

Globe is optimistic the Senate will pass a bill removing a significant roadblock in the rollout of telecommunications infrastructure in villages, subdivisions, and housing projects nationwide. This as the digital solutions platform also lauded the House of Representatives for passing the bill as it brings the company closer to providing a #1stWorldNetwork in the country.

The bill mandates all housing projects, subdivisions, villages, or other residential areas, including socialized housing projects, to allocate 30% of the gross area for open space to establish ICT infrastructure and related amenities.

The House of Representatives has approved on third and final reading House Bill 10388 or An Act Mandating the Allocation of an Area for Information and Communication Technology (ICT) Infrastructure and Facilities in Subdivisions and Housing Development Projects. It seeks to promote the accessibility of ICT and ensure digital connectivity in urban centers and populated areas of the country.

Over the past few years, Globe has encountered numerous permitting issues with homeowners’ associations (HOAs) in establishing right-of-way in subdivisions to deploy broadband fiber and construct cell sites. The HOAs’ refusal was mainly due to unfounded health risks and aesthetic reasons.

“We are thankful to our lawmakers for their support. This piece of legislation helps address the permitting issues for right-of-way and cell site development in villages and subdivisions that affect Globe’s commitment to delivering a #1stWorldNetwork to Filipino homes,” said Atty. Froilan Castelo, Globe General Counsel.

Access to the internet has been life-changing as the pandemic hastened the country’s digitalization. From online learning to working from home and connecting people to loved ones in times of physical isolation, connectivity has become more important than ever.

The huge demand for connectivity prompted the government to heed telcos’ plea for support in network deployment, particularly with the tedious permitting issues. Last year, the government issued two laws to remove impediments in telco infrastructure projects.

Republic Act No. 11469 or the Bayanihan to Heal as One Act (Bayanihan 1) paved the way for faster approval of permits and clearances from local government units to hasten the construction of cell towers. RA 11494, otherwise known as the Bayanihan to Recover as One Act (Bayanihan 2), waived several permitting requirements for telcos.

In line with this, the Department of Public Works and Highways (DPWH) also removed a major bottleneck that prevented telecom service providers from constructing crucial infrastructure projects along national roads. With the new development, Globe is optimistic that it can further accelerate cell site builds and rollout fiber-to-the-home (FTTH) lines.

Globe strongly supports the United Nations Sustainable Development Goals, particularly UN SDG No. 9, highlighting the roles of infrastructure and innovation as crucial drivers of economic growth and development. It is committed to upholding the UN Global Compact principles and contributing to 10 UN SDGs.

To know more about Globe, visit www.globe.com.ph.

Road to #1stWorldNetwork: LGUs as partners in progress

THEPHILBIZNEWS Express — Sat, 13 Feb 2021 01:19:55 +0000

The Bayanihan Act 2 fast-tracking the issuance of permits for telco infra builds was the shot in the arm for the industry to better its services. The law also slashed the number of local and national permits needed to construct new towers across the country. As of December 2020, Globe has built 10,395 cell towers in its portfolio.

“We commend several of our local government units (LGUs) who have followed to the letter the provisions of Bayanihan Act 2. We wish that other LGUs, which until now didn’t have a one-stop shop for permitting concerns in their respective municipal or city halls, will also comply as soon as possible. By doing so, we can also extend to our customers the improvements in our call, SMS and browsing service that we have implemented in other areas of the country,” explained Atty. Froilan Castelo, Globe’s General Counsel.

Globe has asked the Anti-Red Tape Authority (ARTA) to remind several LGUs in NCR, Negros Oriental, Bulacan, Cebu, Kalinga, Ilocos Sur and Cagayan that locational clearances, conformity to local zoning ordinances, Sangguniang Panlungsod Resolution, Neighbors Consent and Barangay Resolution requirements are no longer needed in granting permits to build new cell sites.

These permits are no longer required under the Bayanihan Act 2.

“We need to move forward as demand for connectivity continues to build up and for us to do this, we need the full cooperation and support of all LGUs,” Castelo added.

Last year, several LGUs in Palawan, Nueva Ecija, Negros Oriental, Oriental Mindoro, Occidental Mindoro, Quezon, Batangas, Cavite and Ifugao have already set up their respective one-stop shops.

Makati, Manila, Marikina, and Mandaluyong in Metro Manila; and Calamba in Laguna were also among the forward looking LGUs complying with the provisions.

Since the implementation of the Bayanihan Act 2, Globe has seen a marked increase in the number of issued permits for tower builds.

Globe supports the United Nations Sustainable Development Goals, specifically UN SDG No. 9 which emphasizes the roles of infrastructure and innovation as crucial drivers of economic growth and development. Globe is committed to upholding the 10 United Nations Global Compact principles and 10 UN SDGs.

Globe announces First Quarter 2019 Results: Sharp Rise in Profit Margins; EBITDA Margin of 55% Globe spent P8.8B in CAPEX with majority for its network, representing 24% of gross service revenues

The Philippine Business and News — Mon, 06 May 2019 03:01:08 +0000

Globe continues to invest in its network to support the increasing demand for data services of its customers. For the first three months of 2019, Globe spent around P8.8 billion in capital expenditures or 24%of topline revenues. About 68% of the total expenditures for this period was for data-related services.

Globe closed the first three months of 2019 with consolidated service revenues1 of P36.0 billion, up 13% from a year ago and 3% higher from prior quarter. This was mainly fueled by sustained increase in data usage across all data-related services and products, including the wide array of content offerings, through the Company’s partnerships with global content providers.

Mobile revenues for the period grew close to P27.0 billion, up 11% from the same period of 2018 and 4% higher from the previous quarter, mostly coming from the Prepaid brands. From a product perspective, mobile data revenues amounted to P16.5. billion for the first three months of the year, due to the surge in consumer spending on mobile data, given the rising popularity of promos that provide the best surfing deals. Mobile data continued to be the top contributor to the company’s total mobile business, and now accounts for 61% of gross service revenues from 47% a year ago. Globe is now reaping the benefits of its modernized 4G/LTE network that allows more of its customers to experience faster content downloads, smoother music and video streaming, and richer web browsing experiences, thus the mobile data traffic growth from 180 petabytes in same period of 2018 to 370 petabytes this period. Meanwhile, mobile voice and mobile SMS revenues for the period just ended posted P6.3 billion and P4.2 billion, lower year-on-year by 15% and 22%, respectively.

In view of the new regulatory requirement of one (1) year extension of prepaid load validity, Globe closed the first three months of 2019 with a total mobile subscriber base of 83.5 million, up 13% from the fourth quarter of 2018.

Globe’s home broadband business posted a robust 21% increase from a year ago and 3% against the prior quarter to reach P5.2 billion this period. Home broadband’s resilient performance, was attributed to subscriber expansion in fixed wireless solutions, supported by the affordable, flexible home broadband bundles plus the increasing popularity of Home Prepaid Wi-Fi. Total home broadband subscriber base now stands at over 1.7 million, up 22% from a year ago and around 63% are fixed wireless subscribers.

Moreover, corporate data business showed a notable 16% year-on-year growth from the P2.7 billion revenues from same period of 2018. This was mainly from internet and domestic services coupled with the 5% higher circuit count.

Globe’s total operating expenses and subsidy amounted to P16.1 billion for the period, or 1% higher year- on-year.

Consolidated EBITDA closed the first three months of 2019 with a total of P19.9 billion, up 24% versus last year, as this period’s topline gains fully offset the slight increase in expenses. EBITDA margin was at 55% this period compared to 50% from a year ago. Net income stood at P6.7 billion, 44% higher from a year ago, mainly due to the robust EBITDA growth, offsetting depreciation charges and non-operating expenses booked for the period just ended. Depreciation expenses remained high this period given Globe’s continued network expansion and acceleration of its LTE and broadband rollout. Core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, stood at P6.7 billion, 40% increase from same period of 2018.

President and CEO statement Ernest L. Cu, President and CEO of Globe Telecom Inc., commented:

“I am delighted to report another remarkable performance for the first three months of 2019 with revenues and margins growing beyond our expectations. As we continue to invest in our LTE network, we are also excited with the growth opportunities of our 5G commercial pilot launch in June this year. Through this launch, we will be able to offer our customers a whole new ecosystem of devices to enhance the way they experience data to the home. This is in line with our proven strategy of making our customers a priority, by providing them a superior digital and network experience, despite all the industry challenges that we face ahead.”

“For 2019, we are confident in our ability to maintain this strong growth momentum with the aggressive investments in the network, coupled with the evolving lifestyle bundles that aim to strongly influence the digital life of Filipinos. We believe this would allow full year 2019 revenues to increase by high single- digits from 2018 levels. Likewise, EBITDA margin is expected to end around 50% for 2019, as margins would be continuously impacted by the increasing contribution of the lower-margin data-related products, countered by our continued efforts in managing costs.”

Recent Developments:

In compliance with the directive of the National Telecommunications Commission (NTC), Globe will move the implementation of 8-digit telephone numbers in Greater Metro Manila to October 6, 2019 to give local banks and credit card companies ample time to prepare. The NTC issued an advisory, ordering local telecommunication companies to move the migration date to October 6, 2019 from March 18, 2019. This was after the Bankers Association of the Philippines (BAP) and the Credit Card Association of the Philippines (CCAP) filed their respective petitions to postpone the migration to a later date to provide banks and credit card companies sufficient time to implement the necessary changes to their operations and systems.

Lastly, our Board of Directors approved in its meeting today, the declaration of the second quarter 2019 cash dividend of P22.75 per common share payable on May 31, 2019 to shareholders on record as of May 20, 2019. The second quarter cash dividend payment total is about P3.0 billion. The Board of Directors of likewise approved the declaration of the second semi-annual cash dividend for holders of its non-voting preferred shares on record as of July 26, 2019. The amount of the cash dividend shall be at a fixed rate of 5.2006% per annum calculated in respect of each share by reference to the offer price of P500.00 per share on a 30/360 day basis for the six-month dividend period. Total amount of the cash dividend will be paid on August 22, 2019.