Globe starts IT upgrade in March, says disruptions will be 'small'

Posted at 02/20/2013 4:50 PM | Updated as of 02/20/2013 4:50 PM

MANILA, Philippines - Globe Telecom on Wednesday said it will start its $90-million information technology (IT) system upgrade in March.

In a letter to its subscribers, Globe president and chief executive officer Ernest Cu said the first phase of the IT modernization and transition to the new system will occur between March 2 and March 5.
 
"We have invested over $ 90 million to launch a new and advanced IT system along with our on-going network modernization. Once complete, you can enjoy even better services," Cu said.

Cu said the company, a joint venture between Ayala Corp. and Singapore Telecom,  is exerting efforts to make sure any impact on subscribers will be "small and temporary."

Last year, Globe was hit by complaints from some subscribers about the problems caused by the telco's network modernization program. This even prompted rival Smart Communication to launch an ad campaign that highlighted Globe's woes.

"As with most upgrades of this scale, we are spending significant effort to minimize any impact on you, so any impact will be small and temporary. During this period, you will still be able to call, text, and browse. However, there will be times when you may encounter some issues," Cu said.

During the transition period, Globe assured that subscribers will be able to call, text and browse. However, roaming service activation will not be available during the period. Subscribers are advised to request for activation before March 1.

With the new system, Cu said Globe subscribers will be able to get up-to-date information about their accounts when visiting Globe stores or calling hotlines. Subscribers will also be able to manage their expenses better with new tools to track their phone usage and expenses in real time; as well as enjoy products and promos tailored to their needs.
 
Globe is also migrating to a new billing system, but there is expected to be a three-week delay in the bills of postpaid subscribers. However, the payment due dates will be adjusted accordingly.

"You will also see some changes in your bill, depending on your cut-off date and the time we complete transition to the new system. We will explain changes in how your bill looks like as you receive them," Cu said.

On the other hand, the company said there will be minimal impact on prepaid subscribers of Globe, TM and Tatoo, as well as broadband and landline customers.

Globe is spending around $650 million for its capital expenditures this year. Last year, Globe reported a 30% decline in net income to P6.857 billion due to higher expenses as a result of the network upgrade and higher subsidies.