Globe Network Rollout For 2022 to Deliver First World Network

Globe closed the first nine months of 2022 with ₱74.4 billion capital expenditure (capex), or 14% higher than last year to bring better communications services to its over 91.0 million customers nationwide. 84%  of this period’s total cash capex was allocated for data requirements to further enhance the overall customer data experience. These data requirements include additional LTE upgrades, new 5G sites, more tower builds, and Fiber to the Home (FTTH) rollout.  

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With the Company’s bid to make fast and reliable connectivity pervasive and accessible to more households  and businesses, close to 1.4 million FTTH lines were deployed as of end-September of 2022, versus over  one million lines from a year ago. Globe continues its efforts to provide free broadband fiber upgrades to  its existing legacy broadband customers as part of its commitment to help bridge the digital divide among  Filipinos. Likewise, unlimited prepaid fiber (TMBayan Fiber WiFi) was launched last August in its bid to make fiber internet affordable and accessible to the masses. Filipinos can go online for as low as ₱5 for a  minimum of one hour of internet access, and for ₱20 for 12 hours of high-speed internet connection. 

Additionally, Globe built 1,064 new cell sites, upgraded over 10.6 thousand mobile sites to LTE, and installed 1,887 new 5G sites nationwide to address the growing connectivity needs of Filipinos amid greater digitalization. Globe’s network rollout momentum continues and remains on track to surpass last year’s builds of 1,407. These accelerated upgrading and network expansion efforts will not only deliver a  more consistent level of network quality but will further elevate the standard of connectivity in the country.  

Globe, a 5G pioneer in the Philippines, continues to scale up the deployment of its 5G technology nationwide to deliver improved customer service experience as well as consistent and reliable data services.  Globe’s 5G outdoor coverage has now reached 97.1% of the National Capital Region and 87.7% of key  cities in Visayas and Mindanao. As of end-September 2022, Globe logged over 3 million devices in its  5G network. Globe also expanded its cross-border alliances for 5G which would benefit travelers for a better data roaming experience at affordable costs. Recent tie-ups include Vivacom in Bulgaria, Viettel of  Vietnam, China Mobile of China, Tele2 in Sweden and Vivo of Brazil. Globe also has existing 5G roaming  partnerships with some of the largest telco operators in Asia, the United States, and Canada, Europe, and the  Middle East.  

Moreover, with the Company’s ongoing network investments, Globe once again cements its dominance as  the Most Reliable Mobile Network1in the Philippines, logging the highest scores in All Technology  Consistency2 with 82.55 and All Technology Availability with 92.03, according to the third quarter analysis  by Ookla® Speedtest Intelligence® data. Smart and DITO scored 80.82 and 70.40, respectively, in this  category. On the other hand, availability identifies the network whose users spend the highest percentage  of their time on all technology and is based on coverage scans taken on Android devices. Globe again  emerged on top versus 90.69 and 90.68 of the competition. 

Furthermore, in line with the Company’s ambition to deliver a #1stWorldNetwork, Globe and its partners have landed fiber optic cable in eight provinces within just two months, on track to complete the landmark project by April 2023. The $150-million Philippine Domestic Submarine Cable Network (PDSCN), the  longest domestic subsea cable project in the Philippines, has landed in Lucena City, Boac in Marinduque,  

• 1 Disclaimer: Most Reliable Mobile Network in the Philippines: Reliability based on analysis by Ookla® of Speedtest Intelligence® data for all technology Consistency and Availability data in the Philippines Q3 2022. Ookla trademarks  used under license and reprinted with permission. 
• 2 Consistency score is calculated based on the percentage of a provider’s data samples that meet the minimum 5 Mbps  threshold for mobile download and 1 Mbps for upload. 

Calatrava in Romblon, Placer in Masbate, Iloilo City, Bacolod City, Roxas City, and most recently, the tourist island of Siargao in Surigao del Norte. The sites are among 33 landing points of PDSCN, which has a total cable distance of about 2,500 kilometers. The project commenced in July and is set to finish covering all sites by April next year. The project is seen to deliver connectivity crucial to the country’s recovery from the pandemic, as it will support the government, education, business, and even recreational needs for reliable communication facilities. 

Globe’s substantial network improvement is a testament to its firm adherence to infrastructure buildup and innovation under the United Nations Sustainable Development Goals, particularly UN SDG No. 9, which highlights the roles of infrastructure and innovation as crucial drivers of economic growth and development. 

PH’s Largest ever sale and leaseback deal 

Globe announced last September 23, 2022, that it has achieved the first closing with 800 towers out of the  3,529 towers to be acquired by Frontier Tower Associates Philippines Inc. (Frontier Towers) for a cash consideration of ₱10 billion. This deal was accomplished after just over a month after the signing of the milestone sale and leaseback transactions for the first two tower portfolios last August. 

On the same date, Globe announced the signing of the sale and leaseback agreement with Phil-Tower  Consortium, Inc. (PhilTower) for the third portfolio composed of 1,350 towers. The tower assets up for sale consist of 90% ground-based towers and 10% rooftop towers. Globe expects to raise total proceeds of  ₱20.0 billion from executing this transaction. The towers, which are located primarily in Visayas and  Mindanao, will be leased back to Globe for an initial period of 15 years.  

On October 14, 2022, disclosed the first closing with 701 towers out of the 2,180 telco tower and related  passive telecom infrastructure to be acquired by MIESCOR Infrastructure Development Corporation  (MIDC) for a cash consideration of ₱8.4 billion. To date, Globe has already completed the sale of the 1,501  out of 7,059 towers or 21% of the total towers being monetized as part of this historic initiative. 

Globe Stock Rights Offer Raises ₱17 billion 

On October 12, 2022, Globe announced the results of the Stock Rights Offering held during the offer period  from 3 October 2022 to 7 October 2022. A total of 10,119,047 Common Shares were sold at an Offer Price  of ₱1,680.00 per Entitlement Right with the following results. Accordingly, the Company’s Offer was fully  subscribed. After the issuance of the Rights Shares and the approval of the Increase in ACS, the total  number of the Company’s issued and outstanding shares will be as follows: 

On October 28, 2022, Globe formally listed the 10,119,047 common shares newly issued to shareholders  that participated in the recently concluded Rights Offer (the “Offer”), on the Philippine Stock Exchange.  The common shares were sold in the Offer at ₱1,680.00 per share, raising gross proceeds of approximately  ₱17.0 billion. The Offer marks the triumphant return of Globe to equity capital markets after more than  two decades since it last raised equity from its shareholders. The warm reception of the investing public to  Globe’s Rights Offer was achieved despite tumultuous financial market conditions, solidifying the status  of Globe as an outperformer despite market headwinds. 

Key Portfolio Company Highlights: Non-Telco revenues continue its rapid growth momentum

Globe is at the forefront of introducing digital innovations and is in the position to leverage a suite of digital  solutions through its portfolio companies. From its core telco business, Globe has grown its portfolio with ventures into financial technology, healthcare, edutech, entertainment, adtech, e-commerce, manpower,  information technology services, and investments. 

GCash, the undisputed leader in the fintech platform operated by Mynt, now has 71 million registered users,  with 5.5 million merchants and social sellers, and around 582 GLife merchant partners. GCash already eclipsed its full-year 2021 gross transaction value of ₱3.8 trillion with ₱4.8 trillion this period. GCash is  the only e-wallet with a full suite of financial services including cash loan and buy now pay later products.  At present, GCash is the only Philippines’ double unicorn valued at over $2 billion. 

Other portfolio companies under Globe’s corporate incubator, 917Ventures, include telehealth service platforms KonsultaMD and HealthNow. 917Ventures also has adtech company AdSpark, loyalty, and e commerce solutions provider RUSH, and online grocery shopping platform PureGo, a cloud-based multi-channel communications platform M360 and iNQUiRO which offers suite of data-driven products and solutions designed to create value for enterprises and their customers. 

• KonsultaMD is likewise exhibiting strong growth with more than 2 million users across over 50 thousand retail outlets nationwide. To further expand its reach, KonsultaMD is now also partnering with over 75 brands and utilizing social media app Tik Tok with over 60 million views.  
• HealthNow (including AIDE) has 1 million customers served by over one thousand healthcare  providers across more than 45 specialties. 
• AdSpark, the award-winning and largest locally ad-based data powered digital media and creative  agency launched more than 3,100 digital campaigns. 
• Rappit previously known as PureGo has been quickly expanding its reach and has over 10 thousand products available in 18 stores in NCR and GMM areas serving 38 cities.
• M360, largest A2P multi-channel messaging platform, capable of sending messages to over 700 partner network operators in 190 countries via SMS or chat apps. Generates over 1.1 billion average monthly traffic with access to over 150 million mobile SMS users and over 45 million OTT users in the  Philippines. 
• Rush, the loyalty and ecommerce arm of Globe’s 917Ventures made it to the Top 10 e-commerce solutions companies for 2022 of APAC CIO Outlook – the only Philippine firm on the index. 

Furthermore, the multi-payment platform Electronic Commerce Payments Inc. (ECPay), reported a significant growth in digital merchant partners as many Filipinos now shifted to digital channels. ECPay now has a  general trade retail base of 329,391.  

Globe’s corporate venture capital arm, Kickstart Ventures, is one of the most active venture capital firms in  the Philippines. Kickstart manages two funds for Globe and advises the $180M Ayala Corporation  Technology Innovation Venture (ACTIVE) Fund, the largest fund to come out of the Philippines. Out of these three funds, Kickstart now has 59 investments in 8 countries, backing 124 founders. 

Moreover, Globe’s wholly owned subsidiary, Asticom Technology, Inc., a shared services company, now manages more than 4,600 people from five employees in 2015, and serves more than 150 clients from all over the country.