Globe Telecom’s roll out of its 4G LTE (long-term evolution)- HSPA+service, which caters to the expected growth in mobile data usage, is expected to support revenue growth this year.
“We are rolling out additional fiber optic capacity in order to support our growing 4G LTE-HSPA+ service. Thus, we can easily cater to moremobile datatraffic when demand is there. We expect this endeavor to help generate revenue support this year,” Globe Telecom President and CEO Ernest Cu said, noting that priority areas include Metro Manila, Metro Cebu and Metro Davao.
According to Cu, revenue increase from mobile data usage will be driven by customers’ growing bandwidth requirement as more and more people are engaged in social networking even when they are on the go.
The company’s rollout of more LTE and HSPA+ sites also bodes well withprojections that the number of smartphone users in the country will accelerate over the next several years. Projections indicate smartphone penetration could reach 50% over the next three years, from latest estimate of 18% as of last year, Cu said.
He said the projected upsurge in smartphone penetration will be fuelled by more attractively priced smartphones and changing consumer usage of mobile phones as network coverage becomes more pervasive.
“The growing preference for smartphones will increase the use of mobile internet which, in turn, will help fuel our revenue growth,” Cu said,noting growth in demand for mobile data services, ranging from prepaid daily variants to postpaid unlimited mobile browsing.
Revenues from the company’s mobile business grew 5% quarter-on-quarter growth to a fresh record level of PHP17.331 billion in the fourth quarter, pushing full-year revenues to PHP67.189 billion, a 6% jump from the previous year.
Mobile browsing alone generated revenues ofover PHP3.1 billion in 2012, a 55% surge when compared to PHP2.0 billion in2011 attributed to increased smartphone penetration and the company's continued launch of affordable mobile data plans.
On the other hand, revenues from its broadband business, leapt double digit by 16% toPHP8.721 billion in 2012, compared with PHP7.496 billion in the year-earlier.
Globe Telecom’s 4G LTE-HSPA+ rollout forms part of its $700 million network modernization program launched in November 2011.