As the $150-million Philippine Domestic Submarine Cable Network (PDSCN) nears completion, Globe Telecom Inc. is shifting its focus towards capital efficiency and optimization, with plans to reduce its capital expenditure (capex) budget in the next two years.
Globe partnered with Eastern Communications and InfiniVAN Inc. for the PDSCN, which is on track to be completed this April and will provide reliable connectivity across the country, including unserved and underserved areas.
With the completion of the PDSCN project, Globe said it targets to optimize spending in the next few years by maximizing the utilization of fiber assets and taking advantage of arrangements with tower companies to boost tower construction.
Globe plans to reduce its capex budget to $1.3 billion in 2023 and $1 billion in 2024, from approximately $1.9 billion in 2022.
“As the Philippines continues to build a digital economy, Globe is steadfast in its efforts to bring fast and reliable connectivity to all. We are committed to supporting the government’s initiatives towards innovation, e-governance, and greater digital adoption among Filipinos through our investments in PDSCN and other network infrastructure,” Ernest Cu, Globe Group president and chief executive officer, said in a statement.
With a total cable distance of 2,500 kilometers, PDSCN will soon kick off landing cables in nine remaining segments that cover 13 sites: Calatrava, Romblon; Pasacao, Camarines Sur; Bulan, Sorsogon; Calbayog City, Samar; Palanas, Masbate; Mactan, Cebu; Maasin City, Leyte; Claver, Surigao del Norte; Kinoguitan, Misamis Oriental; Camiguin; Dipolog, Zamboanga del Norte; Liloy, Zamboanga del Norte; and Zamboanga City, Zamboanga del Sur.
The project kicked off in July 2022 in Subic Bay, Zambales, and has completed 15 segments across the country, including key cities and tourism destinations.
The PDSCN project is part of Globe’s network expansion, which aligns with its commitment to improve infrastructure and foster innovation toward development under the United Nations Sustainable Development Goals.
Globe said its push for a #1stWorldNetwork supports government efforts to improve connectivity across the country to fast-track digital transformation.
This is also a main pillar of the Digital Infrastructure sector under the Private Sector Advisory Council (PSAC), a body created by President Ferdinand Marcos Jr. to boost public-private collaboration towards inclusive national development. Cu is a member of PSAC.
The Digital Infrastructure sector has set its eyes on ensuring greater internet access in the country and supporting the government’s digitalization goals — key targets that the President laid down in his first State of the Nation Address.