Surge in subscribers cripples Globe’s wireless broadband network

Globe Telecom Inc. said its network is “temporarily overwhelmed” by the upsurge in wireless Internet broadband subscribers caused by the price war among rival operators. Because the company slashed the price for the Globe Broadband Tattoo stick, the take up of its users grew “significantly,” causing the network to be crippled, Ernest Cu, the company’s president and chief executive, said.

Globe Tattoo’s retail price dropped from P1,895 to P895, while Smart Bro Prepaid kit now costs P995 and Sun Cellular’s Easy Broadband Plan is now only 799 a month.

Cu, however, said that Globe is remedying this by expanding its band with capacity to support the growing number of Globe Tattoo users.

The company’s prepaid wireless broadband subscribers grew 400 percent since it was launched in February.

“That’s good, but at the same time we have to adjust,” Menchi Orlina, Globe’s chief marketing officer, said.

”We are frontloading additional cell sites at the same time [with] other technological intervention that we are doing” would augment network capacity, she said.

Orlina said the poor Internet connection of Globe Tattoo is “definitely a major concern,” but “very soon, the network would be improved tremendously because of the intervention that we are doing.”

At end-June, Globe’s cumulative broadband subscribers more than doubled from 148,769 last year to 379,309 in the first semester of the year driven by the exceptional growth of Globe Broadband Tattoo.

Wireless broadband subscribers comprise 54 percent of total customers, up from 19 percent last year.
Revenues from the broadband business likewise have risen by 59 percent to P1.362 billion from P855 million in 2008.

During the first half of the year, the company’s profit grew 17 percent to P7.2 billion year-on-year, while its second-quarter earnings increased 16 percent to P3.25 billion.

Excluding nonrecurring items, the country’s second largest telco reported a 3-percent rise in core income to P6.9 billion in the first semester, but it declined by 2 percent to P3.2 billion in the second quarter.  REad the original article here http://www.manilatimes.net/index.php/business/4709-surge-in-subscribers-cripples-globes-wireless-broadband-network

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