Globe Telecom Paper

Business History

Globe Telecom has strongly imbibed itself into the hearts and minds of more than twenty six million subscribers. It has been there in every way for its consumers, in structure relationships, at work, interacting and reaching out. Inasmuch as Filipinos enjoy to communicate, World has been a dependable partner, ready to supply the most practical and affordable service as possible. For 83 years, World has lived up to its reputation of innovation leader– from the minute it presented the very first SMS or text messaging service in the nation, and today’s intro of the very first customized postpaid strategies.

Globe has actually been a leader in many methods; each clean slate is a testimony of its dedication to serving its consumers better. In 1928, Congress passed Act No.

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3495 approving the Robert Dollar Company, a corporation organized and existing under the laws of the State of California, a franchise to operate wireless far away message services in the Philippines.

Consequently, Congress passed Act No. 4150 in 1934 to move the franchise and opportunities of the Robert Dollar Company to World Wireless Limited which was integrated in the Philippines on 15 January 1935. Globe Wireless Limited was later relabelled as Globe-Mackay Cable television and Radio Corporation (“Globe-Mackay”). Through Republic Act (“RA”) 4630 enacted in 1965 by Congress, its franchise was further broadened to enable it to operate international interactions systems. Globe-Mackay was granted a brand-new franchise in 1980 by Batasan Pambansa under Batas Pambansa 95. In 1974, Globe-Mackay sold 60% of its stock to Ayala Corporation, regional financiers and its workers.

It offered its shares to the general public on 11 August 1975.

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In 1992, Globe-Mackay combined with Clavecilla Radio Corporation, a domestic telecommunications pioneer, to form GMCR, Inc. (“GMCR”). The merger provided GMCR the capability to offer all types of telecoms to deal with the global and domestic requirements of its clients. GMCR was consequently renamed Globe Telecom, Inc. (“World”).

Fast Forward

It was a monumental partnership in 1993, with then President Fidel V. Ramos as witness to the signing of a Memorandum of Understanding between Ayala Corporation and Singapore Telecom, Inc. (STI), wholly-owned subsidiary of Singapore Telecommunications Limited (SingTel), was formalized, that created a formidable Globe Telecom. During the year, Globe Telecom was catapulted to the status of a giant in the telecommunications industry, and awarded an initial US $30 million supply contract. Since then, Globe Telecom has revolutionized the way Filipinos connect and communicate with the launch of the Globe Handy phone, the country’s first fully digital CMTS (Cellular Mobile Telephone System) using the GSM (Global Systems for Mobile) communications network. It obtained its provisional authority (PA) for International Gateway Facility (IGF) operations and rolled out its fixed telephone service and international direct dial (IDD) services in designated areas. Within a couple of years, Globe launched its G-Net service in 1995 to become the first Philippine telecoms carrier to offer internet access. Thereafter, Globe went into acquisition (Islacom) and interconnection agreements with other telecom carriers to boost its network and services.

In 2000, Globe joined C2C Cable Network, a fiber-optic submarine cable project in the Asia Pacific region. The following year, Globe inaugurated its first cable landing station and backhaul facility in Nasugbu, Batangas. By 2004, Globe launched the GCASH, a breakthrough in mobile commerce and e payments. In 2009, Globe inaugurated its second landing station in Ballesteros, Cagayan. It also reinforced its best network connectivity with the TGN-Intra Asia Cable System and the first in the country to launch worldwide interoperability for Microwave Access (WiMAX). A breakthrough in mobile and landline service for postpaid subscribers in Metro Manila and Cebu called DUO was introduced. This was later on offered to small and medium enterprise (SME) clients, fulfilling the need for additional business lines at a cheaper cost.

Globe also introduced the BlackBerry® lifestyle to the Philippine market with the BlackBerry® Storm, powered by Globe Personal BlackBerry® Plans. Globe was granted the preferential selling rights to the iPhone 3G and iPhone 3GS. This partnership with Apple™ was reinforced in 2010 with the launch of the iPhone 4. Globe Telecom and Visa were recognized as the first two founding partners of the Mobile Money Exchange at the GSMA Annual Mobile Money Summit in Barcelona. Globe Data Center achieved an ISO 27001:2005 certification for having met the Information Security Management System (ISMS) standard. It also received an ISO 9001:2008 certification upgrade for meeting the Quality Management System standard. Boosting its network further, Globe participated in the new Southeast Asia Japan Cable (SJC) System, the highest capacity system in the world that links Singapore, Hong Kong, Indonesia, Philippines and Japan. The company achieved another first by having its Globe Carrier Ethernet offerings certified by the Metro Ethernet Forum (MEF) according to MEF 9 service-provider specifications.

Globe also rolled out its second fiber optic backbone network (FOBN2), a high capacity transmission system that spans over 1,900 kilometers of inland and submarine cable, covering most areas of Luzon, Visayas, and Mindanao.


Globe Telecom, Inc. is a major provider of telecommunications services in the Philippines, supported by over 5,700 employees and over 786,000 retailers, distributors, suppliers, and business partners nationwide. The Company operates one of the largest and most technologically-advanced mobile, fixed line and broadband networks in the country, providing reliable, superior communications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients. Globe currently has over 29 million mobile subscribers, over 1,363,000 broadband customers, and over 666,000 landline subscribers.

Globe is also one of the largest and most profitable companies in the country, and has been consistently recognized both locally and internationally for its corporate governance practices. It is listed on the Philippine Stock Exchange under the ticker symbol GLO and had a market capitalization of US$2.7 billion as of the end of September 2011. The Company’s principal shareholders are Ayala Corporation and Singapore Telecom, both industry leaders in their respective countries. Aside from providing financial support, this partnership has created various synergies and has enabled the sharing of best practices in the areas of purchasing, technical operations, and marketing, among others.

Globe is committed to being a responsible corporate citizen. Globe BridgeCom, the company’s umbrella corporate social responsibility program, leads and supports various initiatives that (1) promote education and raise the level of computer literacy in the country, (2) support entrepreneurship and micro-enterprise development particularly in the countryside, and (3) ensures sustainable development through protection of the environment and excellence in operations. Since its inception in 2003, Globe BridgeCom has made a positive impact on the lives of thousands of public elementary and high school students, teachers, community leaders, and micro-entrepreneurs throughout the country. For its efforts, Globe BridgeCom has been recognized and conferred several awards and citations by various Philippine and international organizations.

The Globe Group is composed of the following companies

Globe Telecom, Inc. (Globe) provides mobile telecommunications services; • Innove Communications Inc. (Innove), a wholly-owned subsidiary, provides fixed line telecommunications and broadband services, high-speed internet and private data networks for enterprise clients, services for internal applications, internet protocol based solutions and multimedia content delivery; • G-Xchange, Inc. (GXI), a wholly-owned subsidiary, provides mobile commerce services under the GCash brand; • Entertainment Gateway Group Corp. and EGGstreme (Hong Kong) Limited (EHL) (collectively referred here as EGG Group), provide digital media content and applications; and • GTI Business Holdings, Inc. (GTI), a wholly-owned subsidiary, is an investment company with authority to provide VOIP services.

The Company is a grantee of various authorizations and licenses from the National Telecommunications Commission (NTC) as follows: (1) license to offer and operate facsimile, other traditional voice and data services and domestic line service using Very Small Aperture Terminal (VSAT) technology; (2) license for inter-exchange services; and (3) Certificate of Public Convenience and Necessity (CPCN) for: (a) international digital gateway facility (IGF) in Metro Manila, (b) nationwide digital cellular mobile telephone system under the GSM standard (CMTS-GSM), (c) nationwide local exchange carrier (LEC) services after being granted a provisional authority in June 2005, and (d) international cable landing stations located in Nasugbu, Batangas and Ballesteros, Cagayan. Globe is organized along three key customer facing units (CFUs) tasked to focus on the integrated mobile and fixed line needs of specific market segments.

The Company has a Consumer CFU with dedicated marketing and sales groups to address the needs of retail customers, and a Business CFU (Globe Business) focused on the needs of big and small businesses. Globe Business provides end-to-end mobile and fixed line solutions and is equipped with its own technical and customer relationship teams to serve the requirements of its client base. Beginning 2011, Globe organized an International Business Group to serve the voice and roaming needs of overseas Filipinos, whether transient or permanent. It also allows the Company to leverage product portfolio on regional and global opportunities.

Business Segments

Mobile Business

Globe provides digital mobile communication services nationwide using a fully digital network based on the Global System for Mobile Communication (GSM) technology. It provides voice, data and value-added services to its mobile subscribers through three major brands: Globe Postpaid, Globe Prepaid and TM. Globe Postpaid includes all postpaid plans such as regular G-Plans, consumable G-Flex Plans, Load Allowance Plans, Load Tipid, Apple TM iPhone 3G plans and high-end Platinum Plans. In 2010, the Company further expanded its postpaid offerings to include MY SUPERPLAN and MY FULLY LOADED PLAN which allow subscribers to personalize their plans, choose and combine various unlimited call, text and web browsing service options.

In addition to these personalized plans, Globe has made available various add-on roaming and mobile browsing plans to cater to the needs of its subscribers. In 2011, Globe consolidated its personalized and customizable plan service with the launch of the All New My Super Plan where subscribers are given the flexibility to create their own plans by either subscribing to an All-Unlimited Plan or an All-Consumable Plan. Subscribers also get the chance to design their plans based on their usage by selecting the freebies and add-on services that would come with their subscriptions. To further enhance their experience, subscribers are allowed to change the freebies and add-on services monthly.

Globe Prepaid and TM are the prepaid brands of Globe. Globe Prepaid is targeted towards the adult, mainstream market. Its unique brand proposition revolves around its innovative product and service offerings, superior customer service, and Globe’s “world widest” services and global network reach. TM, on the other hand, caters to the value-conscious segment of the market. In addition to digital wireless communications, Globe also offers mobile payments and remittance services under the GCash brand. GCash is an internationally acclaimed micro payment service that transforms a mobile phone into a virtual wallet, enabling secure, fast, and convenient money transfers at the speed and cost of a text message. Since the launch of GCash, wholly-owned subsidiary GXI has established a wide network of local and international partners that includes government agencies, utility companies, cooperatives, insurance companies, remittance companies, universities, and commercial establishments which all accept GCash as a means of payment for products and services.

Globe offers various top-up or reloading options and facilities for prepaid subscribers including prepaid call and text cards, bank channels such as ATMs, credit cards, and through internet banking. Subscribers can also top-up at over 786,000 AutoLoad Max retailers nationwide, all at affordable denominations and increments. A consumer-to-consumer top-up facility, Share-A-Load, is also available to enable subscribers to share prepaid load credits via SMS. Globe’s AutoLoad Max and Share-A-Load services are also available in selected OFW hubs all over the world. The Company has a loyalty and rewards program called My Rewards, My Globe for Globe Prepaid subscribers and TM Astig Rewards for TM subscribers. Under the program, and based on a defined scoring system, prepaid subscribers earn points based on tenure and reload.

Subscribers can use their points to redeem rewards including Globe and TM products, travel mileage, and gift certificates from leading retail establishments. Globe Postpaid subscribers outside the lock-up period can also earn points based on their monthly billed amounts and length of stay with Globe. Rewards also include Globe products, as well as bill rebates, gadgets, gift certificates, and travel mileage. Subscribers have the option to redeem rewards instantly, or accumulate points to avail of higher-value rewards. Redeemed points in a form of telecom services is netted out against revenues whereas points redeemed in the form of non-telco services such as gift certificates and other products are reflected as marketing expense. At the end of each period, Globe estimates and records the amount of probable future liability for unredeemed points.

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Globe Telecom Paper. (2016, Dec 11). Retrieved from

Globe Telecom Paper

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