One of the Philippines internet service providers, Globe Telecom, announced that a large chunk of it funds will be used in the modernization of the network that will serve two million homes by 2020.
Globe is set to spend $750 million of its capital expenditure or funds used to acquire physical assets in upgrading to fiber optic cables in 20,000 barangays nationwide. The fund will also be used in installing more cellsites to improve the company’s current services and to provide internet connection in areas that currently have no connection.
The roadmap is expected to take five years, but will yield to different technologies including 3G, LTE and WiFi.
“Data access is currently one of the most important drivers of economic competitiveness and growth. For the Philippines to fully take advantage of new digital opportunities, we need to create an Internet superhighway and provide ultra-fast Internet connection that will enable growth in every corner of our country. We want to make use of technological innovations to make Internet service experience at par with other countries in the world,” Sun Star cited Globe president and CEO Ernest Cu.
Slow Internet In Philippines Due To Bureaucratic Maze, Corruption
Cu explained that the slow internet connection in the country is also because of the bureaucratic maze and corruption in various local government offices. He even compared the number of cellsites installed in different Asian countries. Currently, Philippines has 15,000 cellsites all over the country, while “Vietnam has 55,000 cellsites, Indonesia 76,477 cellsites while Thailand has 52,483 cellsites. Even Bangladesh beat the Philippines with 27,000 cellsites.”
According to Philippine Star, telcos need a minimum of 25 permits before they can put up a cellsite, which depends whether the incumbent local government unit is cooperative. Moreover, it takes at least eight months to install a cellsite. The Globe president claimed that local government officials are making it difficult for the telcos to put up needed structure to improve the service.