Globe has enhanced its digital infrastructure in Pangasinan, building four cell sites and upgrading 13 existing ones to support connectivity needs in the province, known for agricultural bounty and a burgeoning tourism industry. The new sites, built in Bayambang, Binalonan, Mangatarem, and San Manuel, aims to deliver robust mobile and internet connectivity throughout these strategic locations. Pangasinan, an agricultural powerhouse in Northern Luzon, boasts of vast farmlands and a rich coastal environment, supporting both traditional and innovative agricultural practices. It is known for the best tasting bangus, bocayo, and bagoong. The new and expanded Globe sites are expected to benefit the local agricultural sector, enabling farmers to access up-to-date information on weather, market prices, and modern farming techniques. These improvements in digital connectivity will help farmers optimize their operations, leading to increased productivity and profitability. Tourism in Pangasinan, a vital contributor to the local economy, will also receive a substantial boost. Enhanced connectivity will make it easier for tourists to plan their visits, navigate the region’s attractions, and share their experiences in real-time. The province offers numerous natural and historical attractions such as the Hundred Islands National Park, Bolinao Falls, Cape Bolinao Lighthouse, and the Minor Basilica of Our Lady of the Rosary of Manaoag which draw many local and foreign visitors every year. Globe’s expanded network in Pangasinan aligns with the local government’s efforts to digitalize services and promote economic development. “Our efforts in Pangasinan are designed to support the province’s key industries by providing the digital tools necessary for innovation, growth, and success,” said Joel Agustin, Globe SVP and Head of Service Planning and Engineering. The company’s investments in the region provide a foundation for more robust economic activities, better public services, and improved access to education and healthcare.    

By Dante Salvana   SUBIC BAY FREEPORT– The Aurora Subic Leisure Inc. and the International Workplace Group (IWG) recently signed a memorandum of agreement which will pave the way of opening the Regus shared office workplace development at the Aurora Suite and Pavilion in Subic Bay Freeport zone. Aurora Subic President Paolo Francisco welcomes the new partnership agreement with IWG saying that this is another milestone, an endeavor and likewise a great opportunity here in Subic. The Regus Center will be located at the 4th level of Aurora Suite and Pavilion, with a dynamic work environment and breathtaking bay view blending professional excellence with unparalleled coastal beauty. A 900 square meter area roughly 220 work station with 45 offices with different sizes to fit difference needs like meeting rooms, reception and business lounge. “Today is marks the important milestone of Aurora Subic Leisure Inc. as we officially embark as a new chapter of thru collaboration and share successful with IWG,” said ASLI Chairman John Ross Francisco. “For us at Aurora Subic, this agreement is more than a contract is a statement of mutual trust, a pledge to work together to a common goal and shared commitment for delivering value not just for our company but for costumers employees and communities,” he added. Aurora Subic Inc. started the year by partnering with hospitality innovators incorporated (HII) and one of the winning hotels and service residences operated and manage by HII in the Philippines. For his part, Lars Wittig, Country Manager of IWG said that of Aurora Subic Hotel he truly believed in Subic Bay freeport investments and jobs creation at least a very bright future in this area. “Therefore I was delighted that Aurora Subic is committed in investments just like you did in your hotel business partner up with specialist on that area. We believe and delighted that we are the chosen partner for the flexible work space as a service for the Regus brand. We know that we have a strong demand here we know that Subic Bay Freeport is very important addition on our national network,” Wittig said. He described Subic Freeport as a strategic location targeted for their expansion since the opening of Regus (shared workplace) in Clark Freeport in 2015. “Clark is the gateway, driving from Metro Manila in the northern direction, and Subic is the logical extension that offers excellent logistics, free port and development zones in the same manner as Clark,” Wittig said. IWG is the global leader in hybrid work solutions and workspace brands. The company utilizes hybrid working platforms to increase productivity, efficiency, agility and market proximity of its clientele. It has a network coverage that includes 3,500 locations across more than 120 countries and 83 percent of Fortune 500 companies are part of their customer base. (Dante M. Salvaña)      

Innovation brings connectivity to remote areas   Globe recently held a successful end-to-end satellite SMS customer trial in a remote area with no reception in Zambales, a milestone in the company’s initiative to deliver connectivity in Geographically Isolated and Disadvantaged Areas (GIDAs). In the breakthrough test, Globe transmitted text messages using standard phones via Globe and TM SIMs through partner Lynk Global Inc.’s low-earth orbit (LEO) satellites, marking a major breakthrough in providing reliable and inclusive connectivity. The historic trial marks the first time regular mobile phones on prepaid and postpaid accounts have connected directly to a satellite to send SMS. This is particularly relevant in the Philippines, where many areas remain isolated due to the archipelago’s diverse geographical makeup. The live demonstration, conducted in a mobile blackspot in Lake Mapanuepe, Zambales, utilized Lynk’s state-of-the-art “cell tower in space” LEO satellites that provide direct-to-standard-phone global connectivity in partnership with Globe. The test, which used a range of mobile devices, showed that direct-to-phone satellite communication is possible without any modifications to existing devices, allowing for widespread access and affordability. The innovative achievement highlights Globe’s dedication to expanding coverage, particularly in rural and underserved areas where building traditional cell towers remains a challenge. “This is a significant step in our mission to bridge the digital divide, ensuring that every Filipino, regardless of location, stays connected to the world,” said Gerhard Tan, Senior Director and Head of Technology Strategy and Innovations at Globe. “By leveraging Lynk Global’s low-earth orbit satellite technology, we are breaking barriers and bringing the next wave of solutions to the remotest areas, allowing families, travelers and businesses to stay closer than ever.” Globe will hold another trial in different scenarios in Mindanao this month, which will solidify its adoption of this innovative technology. The company plans to fully integrate this technology in its network in order to serve more GIDAs. Globe currently has presence in over 500 GIDAs across the country. Globe has consistently led the way in introducing cutting-edge technologies to the country. This customer trial is only the beginning of the company’s vision to incorporate satellite-based communication into its services, further cementing its role as a leader in technological innovation in the Philippines.        

Cebu Pacific (PSE: CEB), the Philippines’ leading carrier, took delivery of another A320neo, its 11th aircraft for the year, as part of the airline’s commitment to expand its network and provide accessible air travel for every Juan. The 180-seater and fuel-efficient A320neo arrived at the Ninoy Aquino International Airport (NAIA) in Manila on September 13. “We’re thrilled to welcome another aircraft to our growing fleet. This delivery supports our commitment to making air travel more accessible and can help us serve upcoming route launches in October, including Davao to Puerto Princesa and Hong Kong,” said Xander Lao, CEB President and Chief Commercial Officer. Airbus NEOs are the latest-generation aircraft that burn 15 percent less fuel per flight and produce less noise compared to the previous generation. The reduction in fuel consumption leads to a corresponding reduction in aircraft carbon emissions. CEB operates one of the youngest fleets in the world, with its diversified commercial fleet mix of nine Airbus 330s, 40 Airbus 320s, 22 Airbus 321s, and 15 ATR turboprop aircraft enabling the widest network coverage in the Philippines.    

Leading fiber broadband and technology provider Converge ICT Solutions Inc. is looking to reinvent the Philippines’ hospitality industry with the deployment of pioneering technologies that will improve hotel guest experiences. Converge CEO and Co-Founder Dennis Anthony Uy recently announced this exciting development in the sector to the members of Hoteliers Information Technology Association of the Philippines Inc. (HITAP), a guild of IT executives from the country’s top hotels, during the celebration of the association’s 30th anniversary. Uy expressed his intent to further stimulate digital transformation among hotel industry players, offering solutions that enable both operations management efficiency and superior hotel services. “Our innovative hotel technology is already underway with the forecasted full recovery in our tourism. We are building not just the technology, but the whole ecosystem to support our local hospitality sector,” he said. The Converge CEO recalled that in the early days of his business, one of his first customers was the Mimosa Clark Hotel in Pampanga, which made him well acquainted with the technology needs of lodging companies. Currently, he sees the surging demand for in-room entertainment, prompting Converge to develop a comprehensive solution that integrates connectivity, operations management, and versatile streaming options for guests. “All of these, we are incorporating in a single platform as made possible by our digital infrastructure. The technology is an all-in-one solution, making things a lot more convenient and easy, you would no longer ask for more,” he added. Uy noted that Converge is ready to serve hotel and other lodging companies wherever they are, having a world-class and extensive network infrastructure with established presence nationwide. Converge unveiled last year its Converge Workplace Hotel Management Solution, an all-in-one management system that automates different hotel processes such as reservations management, check-in and out, and sales channels tracking. “Our customers can look forward to our new solutions addressing their needs in today’s dynamic landscape. We continue to listen and understand their challenges as our priority is bringing them innovations that will allow them to be more competitive and improve their way of doing business,” said Converge Chief Commercial Officer and Chief Sustainability Officer Benjamin Azada. Recently, Converge introduced its Disaster Recovery as a Service (DRaaS) which provides business continuity and data protection capabilities in the event of a disaster.  

Slashes 1H 2024 capex by 25% to achieve positive free cash flows by 2025 Globe expects to finalize its landmark tower sale and leaseback deal by the end of 2024. As oof July this year, 88% of the towers in the portfolio have been officially transferred to the tower companies, generating around Php 85.2 billion in gross proceeds. This significant financial inflow is expected to support Globe’s strategic initiatives and further strengthen its financial position. Also, as part of Globe’s strategy to optimize capital deployment, the company slowed down its capital expenditures (capex) investment by 25% in the first six months of the year, aligned with its goal to achieve positive cash flow by 2025. Rizza Maniego-Eala, Globe’s Chief Finance Officer, expressed confidence in the timeline for the completion of the sale. “We are aiming to complete 100% of our tower sale by this year. However, even if we only reach about 92% by December, we will still be on track, considering that the fourth tranche of our tower sale came six months after the first three transactions,” she said. The tower sale, which started in 2022, has seen significant progress throughout 2024. Globe successfully transferred an additional 48 towers to Phil-Tower Consortium, Inc. (PhilTower) on June 21, for approximately P710 million. On June 28, Globe handed over 140 towers to Miescor Infrastructure Development Corporation (MIDC) for P1.68 billion. Simultaneously, 187 towers were transferred to Frontier Towers for approximately Php 2.38 billion. By July 23, Globe completed the transfer of the last batch of 1,037 sites to Frontier Towers for P13.17 billion, marking the full completion of its Tower Sale and Leaseback Deal with the company. In his recent State of the Nation Address, President Ferdinand Marcos, Jr. emphasized the importance of common towers for national connectivity, a strategy that Globe President and CEO Ernest Cu fully supports. “This (referring to the President’s statement) reinforced Globe’s strategy of using common towers,” Cu said.  “We believe in the concept that shared tower cost and shared tower build reduces the capex requirements for the telcos. We hope that with the reduced Capex requirement, we’ll be able to collectively put up more towers between the towercos and us.” With the tower sale almost completed, Globe’s financial outlook remains optimistic. “Our free cash flow after interest payments for the second quarter of 2024 already entered positive territory, which included proceeds from our tower sale initiative,” said Maniego-Eala. She added, “We expect the momentum coming from strong operating cash flows to continue through to next year, driven by both top-line growth and our efforts on cost and investment optimization. This positions us to continue posting free cash flow positive results in 2025, even without one-offs.” To achieve sustainable free cash flow, Globe invested P23.8 billion in capex in the first half of 2024, a 25% drop from 2023, consistent with its capex guidance of USD 1 billion this year as part of its sustainable capex spending strategy. This capex investment, equivalent to just 34% of Globe’s topline, marks a significant decrease from the 44% Capex-to-revenue ratio recorded in 2023. Globe aims to return to the industry’s average levels, targeting a Capex-to-revenue ratio of 30-35% for the year. As Globe continues to optimize its investments, the company is poised to maintain its leadership in the telecom sector while ensuring sustainable growth and profitability in the years ahead.  

Ookla® Speedtest Awards™ recognizes Converge for unparalleled speed and consistency By Rizza C. Ampong Converge ICT Solutions Inc. (PSE: CNVRG), the Philippines’ leading fiber broadband provider, has once again secured its position as the undisputed leader in broadband industry, clinching the prestigious Ookla® Speedtest Award™ for the *Fastest Internet Provider in the Philippines for the first two quarters of 2024. This marks the second consecutive year that Converge has outpaced competitors, solidifying its commitment to delivering unparalleled digital experiences to Filipino households and businesses. Dennis Anthony Uy, Converge CEO and Co-Founder, said: “In 2023, we took up the mantle of being the Fastest Internet Service Provider in the Philippines. This responsibility continues to be placed in our hands as we, again, were declared by Ookla as giving the best speed experience to Filipinos this first half. We will not rest on our laurels, of course, and we will continue to stay ahead as we leap into the future,” The Ookla® Speedtest Award™ by Ookla®, the global leader in mobile and broadband network intelligence, testing applications, and related technologies, utilizes extensive in-depth analysis of consumer-initiated tests taken with Speedtest, to determine the fastest and most consistent fixed network providers. The ICT company’s victory is backed by impressive statistics: Unmatched Speed: Converge achieved a speed score of 147.77, with superior top download speeds of 603.46 Mbps and top upload speeds of 552.21 Mbps, exceeding its previous year performance. Exceptional Consistency: The company maintained themost consistent high-speed performance in most areas across its network for the second year in a row. Best-in-Class Latency: Converge achieved the best latency time at 11.35 millisecond for fixed networks, ensuring a seamless online experience for users Converge Executive Vice President and Chief Commercial Officer Benjamin Azada, highlighted the company’s holistic approach: “This achievement is a direct result of our continuous network enhancements and product innovations. We’re not just chasing numbers and recognition; our goal is to offer fast, reliable, and tailor-fit products for different market segments, ensuring that every Filipino has access to world-class internet.” Speed upgrades like Boost Mode exemplify the company’s commitment to tailoring services to customer needs. This initiative allowed users to have boosted speed while keeping the same monthly recurring fee, perfect for bandwidth-intensive activities or crucial online events. Converge has also expanded its service to budget-conscious markets, launching Surf2Sawa, the Philippines’ first prepaid fiber internet service where subscribers have the freedom of unlimited yet affordable internet. The company also introduced BIDA Fiber, the most budget-friendly postpaid plan available for consumers who require fast internet without compromising affordability. Recently, Converge unveiled its new contract-free FiberX plans, designed to cater primarily to consumers residing in condominiums. The No-Contract Term plan will enable new customers to swiftly benefit from the provider’s signature high-speed, unlimited, and economical pure fiber internet connectivity with minimal effort. Looking ahead, the company is poised for even greater achievements. “We’re investing heavily in expanding our network reach with international cable system investments and introducing and employing cutting-edge technologies like artificial intelligence and large-scale capacity optical networking technology for hyperscale applications,” revealed Converge Senior Executive Vice President and Chief Operations Officer Jesus C. Romero. “&We’re working hard in the backend and frontend so we can create amazing digital experiences for every Converge customer.” This latest accolade reinforces the position of Converge as a trailblazer in the Philippine telecommunications industry. As the company continues to push boundaries and set new standards, it remains committed to its vision of a fully connected Philippines, where high-speed internet is not a luxury, but a fundamental right, and where amazing customer experience is the benchmark of service and commitment. *Based on analysis by Ookla® of Speedtest Intelligence® data for Q1-Q2 2024. Ookla trademarks used under license and reprinted with permission. LIFE ON THE FAST LANE: Users take the speed test and see the difference. DOMINATING THE GAME: Converge offers tailor-fit plans for the best gaming experience. NEXT EPISODE PLEASE: Streaming to the extreme with Converge, your reliable viewing buddy.

By: Dante M. Salvaña   Clark Freeport—Lawmakers on Tuesday approved a measure that will create the national food hub at the Clark civil aviation complex aimed to centralize and modernize the distribution, storage, and processing of agricultural products in the country. House Bill 10678 or ‘An Act Establishing the Clark National Food Hub, Appropriating Funds Therefor and for Other Purposes’ was unanimously approved by the House Committee on Trade and Industry chaired by Rep. Ferjenel Biron (4th District, Iloilo). The bill’s principal authors are representatives Rufus Rodriguez (2nd District, Cagayan de Oro), Maria Angela Garcia (3rd District, Bataan), and Anna Victoria Veloso-Tuazon (3rd District, Leyte), while its co-authors are Rep. Salvador Pleyto (6th District, Bulacan) and Rep. Mark Go (Lone District, Baguio City). Rodriguez said there is an urgent need to address the country’s food security issues through a systematic streamlining of food distribution process. “Establishing a national food hub in Clark will play a crucial role in shortening the supply chain from producer to consumer (and) will not only standardized logistics but also ensure the efficient movement of food products, thereby enhancing overall efficiency. The initiative is further reinforced by the Philippines’ development plan which includes food security measures (and so) the Clark national food hub is designed to achieve these objectives for the Filipino people,” Rodriguez said. The CIAC is tasked to develop, operate and manage the civil aviation complex surrounding the Clark International Airports and the site where the 62-hectare national food hub will be established. CIAC President and CEO Arrey Perez said the committee approval is “a patriotic act that will benefit the country’s agriculture sector and the nation.” “We’re both grateful and honored to be recognized as this support from Congress aligns with the national government’s initiative to develop the Luzon Economic Corridor which will position our country as a regional hub for agribusiness and logistics in Asia Pacific, and is consistent with the Marcos administration’s thrusts on agriculture development, particularly in the advancement of the country’s aqua-cultural and agricultural industries,” he added. Early this year, President Ferdinand Marcos, Jr., U.S. President Joe Biden, and Japanese Prime Minister Fumio Kishida launched a steering committee to drive infrastructure development in the country’s Luzon Economic Corridor (LEC), supporting connectivity between Subic Bay, Clark, Manila, and Batangas. Secretary Frederick Go, Special Assistant to the President for Investment and Economic Affairs who chairs the LEC committee, has identified food and agriculture as one of the priority industries for investments. “We continue to pursue initiatives that contribute to increasing agriculture production, and improving the food logistical chain. The Clark National Food Hub is a step in this direction, and we look forward to its successful establishment as a sustainable food security solution,” Go said. “As soon as this proposal becomes a law, it will bolster agrologistics as support to our country’s robust agricultural production. It will also enhance freight transport services, mobility, and access to key economic zones, toward seamless logistics and efficient supply chains. This means higher farm productivity and sustained agribusiness, and higher income for Filipino farmers,” Perez added. Also in attendance during the committee hearing was former President and now Pampanga’s 2nd District Representative Gloria Macapagal-Arroyo who expressed support for this proposed flagship project, citing the CIAC leadership’s competence in promoting investments. Perez noted the project will simultaneously address food security and logistics cost concerns by providing predictable, sustainable, and modern solutions for the demand and distribution of agricultural produce of Luzon to both domestic and foreign markets. The approved measure will be referred to the Committee on Appropriations and the Committee on Ways and Means for the funding and tax incentives provisions. The Clark National Food Hub features key components, including state-of-the-art food storage warehouses, cold storage- facilities, processing units, administrative offices, logistics infrastructure, and wholesale and retail market spaces. The project will serve as a central hub for high-quality food products, catering to organized producers, collectors, retailers, supermarkets, suppliers, and regional producers. It offers an adapted consumption wholesale market to meet long-term fresh food requirements, facilitates the export of Filipino agricultural products, and includes an ambitious warehouse program for various food companies.              

Globe’s net income for the first half of 2024 remains solid at Php 14.5 billion, primarily driven by strong growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) that effectively offset the increase in depreciation expenses. Excluding the one-time gain from the Globe tower sale, normalized net income stood at Php 11.9 billion, reflecting a significant 19% increase from the previous year. Conversely, Globe’s core net income would have surged by 21% if ECPay had been deconsolidated from its books in the first half of 2023. Nevertheless, Globe’s core net income which excludes the effects of non-recurring charges, foreign exchange, and mark-to-market charges, expanded by 18% year-on-year, reaching Php11.7 billion during the first half of 2024. “Our sustained growth in both net income and core net income is a testament to our continued commitment to delivering exceptional value to our customers while maintaining disciplined cost management. We are pleased with our performance in the first half of 2024, which highlights our focus on strategic priorities and operational efficiencies,” said Ernest Cu, Globe President and CEO. Globe’s mobile business demonstrated resilient growth, achieving record-high revenues of Php58.4 billion by the end of June 2024, compared to Php54.8 billion during the same period last year. Meanwhile, the company’s consolidated EBITDA amounted to nearly Php43 billion, marking a strong 6% increase from the previous year. This growth was driven by a 2% rise in consolidated gross service revenues, coupled with a 2% reduction in operating expenses plus subsidy. EBITDA would have been higher by 7% year-on-year if ECPay’s deconsolidation from Globe’s books was considered as of the first semester of 2023. Additionally, the company’s EBITDA margin demonstrated impressive year-on-year progress, rising from 50% to 52%, surpassing the full-year guidance of 50%. As Globe looks to the future, it is poised to leverage its strong financial performance and strategic investments to drive further growth and innovation in the telecom industry.