Globe Telecom's board of directors have approved the company’s Capex of $850 million for 2018, same level as last year, said the company in a disclosure to the Philippine Stock Exchange last Friday.
Globe said its sustained level of capital spending mainly to fund its commitment to provide fast internet service to two million homes by 2020. Globe has progressively increased its capital spending since 2015, averaging 31 percent annually on a capex-to-revenue ratio basis.
A good portion of the company’s capex will also be utilized for the deployment of massive MIMO technology to expand and enhance its LTE network.
Globe said the massive MIMO technology enables a mobile network to multiply the capacity of a wireless connection without requiring more antennas, increases wireless throughput, accommodating more users at higher data rates with better reliability while consuming less power.
In the case of home broadband, speed and range benefits of MIMO technology allow customers to have reliable data connection especially since more and more customers are now using video streaming services.
Ernest Cu, President and CEO, Globe Telecom
Majority of the company’s capex for 2018 is geared to meet customer demand for more bandwidth-intensive content, which, in turn, will support the revenue momentum of our data-related services.
