Thursday, April 28, 2011

Globe Telecom to start major transformation project

Source: Here

Globe Telecom (part of Ayala Group, Philippines) embarking on a massive transformation project. The main focus is on Quality and capacity expansion. If we see their recent results, their costs are increasing steeply while the revenue is stand still.

After PLDT merger with SUN (here), Globe certainly need to change to improve its position. I believe they are moving in the right direction. Their biggest problem is the Voice + SMS. Ironically philippines is the country with highest sms usage and this is where Globe performing poorly. No wonder their market share is just going south.

The cost structure should be changed and they should focus more on the network/infrastructure. When Globe started their operations they've had one of the best infra. But after 8 years (after their major upgrade) now the network is old, not supporting the change in the usage pattern, and mttr is low and mtbf is high.

I am going to meet one of their senior exec soon and will share more info later on..

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