MANILA, Philippines — As competition in the Philippine telecom industry toughens, Globe Telecoms Inc., sets its focus on expanding its core expertise in telecommunications and technology and to hopefully finally seal the deal with Lopez-led telecom firm Bayantel.
Globe Telecom president Ernest Cu said in an interview that Globe is currently in talks with Bayantel and that negotiations is leaning towards either a partnership deal or a complete acquisition.
Both companies will announce the finality of the negotiation in the next 60 days, Cu said on the sidelines during yesterday's Globe Telecom Stockholders Meeting held at the Fairmont Hotel in Makati City.
In his speech, Cu reported to its shareholders the company's active move in growth acceleration, following the near completion of its US$700 million network modernization program.
"In 2012, Globe set new records, moved closer to superior customer experience, and marched steadfastly towards long-term competitiveness. From this point on, 2013 is the year when our transformation will start to bear fruit. Now, imagine what that will be like. The best of our company is yet to come," he assured stockholders.
The company's service revenues in 2012 reached a new record high of P82.7 billion, a six percent rise from a year earlier, "reflecting tremendous growth despite a very challenging competitive environment."
As part of its network modernization program, Globe Telecom has already completed the first phase of network transformation which involves a complete change-out of equipment even as network optimization process is still ongoing.
Additional areas have also been identified for the company's network transformation in tandem with planned expansion of its fourth-generation coverage footprint.
Globe Telecom also endeavored to integrate 200-plus legacy IT systems so the company can raise the bar on how it deals with its customers.
"Our IT transformation is well underway to enable the seamless stitch between service subscriptions and real-time billing, all the way through to comprehensive after-sales service," he said, emphasizing the new business support system is meant to streamline the work of frontliners.
"Soon a new business intelligence platform shall come on line as well to know customers more intimately and in so doing we shall be able to develop spot-on services for them with more relevance and urgency," he added.
Meanwhile, the company also hiked its dividend payout by three percent and remained committed to its policy of distributing 75 percent to 90 percent of the company of the previous year's core net profit.
Core net profit, which includes the effects of accelerated depreciation, foreign exchange, mark-to-market charges and non-recurring items, posted a healthy growth of two percent to P10.3 billion in 2012 from a year earlier. /JOB (FREEMAN)