Globe to pick Alca-Lu and Huawei for USD700m worth of contracts

20 Feb 2012

Philippines telecoms operator Globe Telecom is poised to award contracts worth a total of USD700 million to Alcatel-Lucent and Huawei Technologies to modernise its network, BusinessWeek reports without citing its sources. It is understood a minimum USD570 million will be committed in 2012/13, with the country’s president Benigno Aquino expected to witness the signing of the supply deals at the presidential palace this week.

As reported by CommsUpdate, Globe Telecom last week reported a steep fall in net income for the last three months of 2011 due to higher than expected marketing costs following the merger of its two main rivals Philippine Long Distance Telephone Company (PLDT) and Digital Telecommunications Philippines Inc (Digitel), although full year profits and income were up year-on-year. Globe said its fourth-quarter profits tumbled by 29% to PHP1.85 billion (USD43.6 million) from PHP2.60 billion in Q4 2010 as a result of higher marketing spending ‘to kick off the company’s 2012 sales programmes and to counter the increased marketing push of competition during the period,’ it said. Commenting on the results, Ernest Cu, president and chief executive officer of Globe, said: ‘The next two years will be a critical period for Globe as we execute our network modernisation programmes, and as we improve our business support systems and processes, all towards our goal of making customer experience a key differentiator. Our network and lT transformation program is an ambitious and yet necessary undertaking which will provide the platform that will make us even more competitive in this fast-moving market.’