Globe Telecom president and CEO Ernest Cu said that rising customer demand for video streaming services, amid a continuous shift to a digital lifestyle and growing proliferation of connected devices, is expected to support Globe’s bid to expand its broadband business.
Cu said the availability of video streaming services in the Philippines has been changing the way customers are viewing entertainment content.
“The appeal of video streaming is catching up in the Philippines because it allows customers to access their favorite video content anytime, anywhere, on any device,” noted Cu. The current trend is expected to fuel the company’s bid to expand its broadband business, supported by an aggressive five-year fiber rollout that it initiated last year, he said.
According to Cu, Globe expects residential internet users to switch massively to viewing on demand and streaming services such as Hooq, Netflix, Tribe, and others – which will also help Globe compete with pay-TV companies. “One advantage of Globe is that we have no legacy pay-TV on our portfolio to manage conflict with or cannibalize from. We just head on to the next habit that’s forming among Filipinos which is watching TV on streaming services.”
Cu added that the same strategy Globe implemented for its mobile services will be employed for fixed line: namely, understanding customers’ needs and habits, how they’re evolving, and catering to them.
Globe’s broadband subscribers increased 6% at the end of 2016 to 1.13 million, compared to just over 1 million a year earlier, while smartphone use increased to 61%.
To support the additional bandwidth requirement necessary for video streaming and to enhance the overall digital lifestyle of its customers, Globe started last year a program to deploy 2 million high-speed broadband lines, with a minimum speed of at least 10 Mbps, within the next few years until 2020. The plan is aligned to its strategy of focusing on broadband services; supporting the company’s initiative to improve internet experience holistically, while “redefining” the home broadband experience.
With a target deployment of 400,000 high-speed lines by the end of 2017, Globe is planning progressive deployment within the next three years. The operator says it deployed over 260,000 high-speed broadband lines in 2016.
Revenues generated by its broadband business reached P14.5 billion ($288 million) in 2016, up 28% year on year, mainly as a result of sustained expansion of its customer base, Globe says.