GLOBE Telecom, Inc. is planning to offer new products and services as it prepares for increased competition in the telecommunications industry, its top official said.
“Globe is stepping up its efforts so you will start to see more aggressive offers that will give the people basically 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.
DITO is currently capable of serving 37.48% of the country’s population, according to a technical audit report by R.G. Manabat & Co.
The third telco has a commitment to cover 84% of the population and provide an internet speed of at least 55 megabits per second by the end of its fifth year of commercial operations.
“Certainly, at this point, we don’t see that (effect) yet given the very wide disparity in coverage between them (DITO) and the two incumbents,” Mr. Cu said.
Globe noted that DITO only runs on fourth-generation (4G) and 5G networks “that cater mostly to data services and not voice calls and SMS.”
The Ayala-led telco targets “to own the widest 5G coverage worldwide with more upcoming launches in Europe and North America,” the company said.
Globe announced last week that its attributable net income reached P7.31 billion in the first three months of the year, up 11% from P6.58 billion in the same period in 2020.
Its total revenues for the first quarter rose 4% to P42.85 billion from P41.19 billion in the same period last year.
Service revenues — which include mobile, home broadband, corporate data, and fixed line voice — increased 2.5% to P37.81 billion from P36.88 billion previously.
Globe Telecom shares closed 1.67% lower at P1,829 apiece on Wednesday. — Arjay L. Balinbin