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Data connectivity to drive Globe revenues this yr and next
[October 22, 2014]

Data connectivity to drive Globe revenues this yr and next


(Philippine Star News Via Acquire Media NewsEdge) MANILA, Philippines - Ayala-led Globe Telecom Inc. expects data to continue to drive revenues for the rest of the year and the next, the company's top official said in a statement.

Globe president and chief executive officer Ernest Cu said the company would continue to lead the industry in terms of revenue growth on expectations of steady subscriber increase amid robust demand for data connectivity on growing customer preference for the use of data-capable mobile devices.



"Our strategy to be the network of choice for smartphone users in the Philippines seems to be working very well and the company continues to attract customers amid the popularity of data-driven applications. This will continue to underpin our revenue growth prospects for the rest of the year and the next," Cu said.

He pointed out that the company's recent decision to re-introduce its free Facebook promo is intended to enable more Filipinos to gain Internet connectivity without any cost.


Globe is the first telecommunications company in the world to provide Free Facebook access in October last year to its mobile customers. The offer ran for about six months.

Cu said the offer helped boost its mobile data revenues that grew 11 percent to P6.2 billion in the first half of the year from P5.6 billion in the same period last year.

usiness ( Article MRec ), pagematch: 1, sectionmatch: 1 Globe's subscriber base jumped 19 percent to a record 45 million as of end-June this year from 37.9 million as of end-June last year due to a substantial customer uptake in its mobile and broadband businesses.

Globe's prepaid subscriber base reached 19.3 million while that of TM totaled 21.3 million. On the other hand, Globe's postpaid subscriber base reached 2.1 million as of end-June this year.

Likewise, the subscriber base of its broadband business reached 2.2 million.

Cu's statement supports the forecast of Fitch Ratings that Globe's revenue growth will be faster than competition's.

"Competition is intense in the data segment as both telcos continue to offer handset subsidies and are only gradually migrating to volume-based tariffs from unlimited tariffs. Globe's revenue is likely to rise by mid-single digits in 2015, greater than PLDT's growth given it has a higher proportion of smartphone users," Fitch said.

Globe has completed the rollout of the HSPA+ technology and equipped its entire network with 4G technology to provide its subscribers with faster and more reliable wireless internet connectivity.

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