Jun. 10--In a briefing, Menchi Orlina, Globe's head for consumer marketing group, said the company is "aggressively investing heavily on propagating broadband usage to penetrate the market."

Orlina expects the potential market for wireless Internet broadband to reach 20 million users by 2012.

To further tap the rising demand for wireless broadband Internet, Orlina said the company offered Globe Broadband Tattoo and Globe Broadband Powered by WiMAX (worldwide interoperability for microwave access).

With Globe Tattoo, users can experience speeds of up to 2 megabytes per second, delivered using 3G and high-speed downlink packet access.

At present, Globe has 287,000 broadband subscribers for both fixed and wireless, while rival Philippine Long Distance Telephone Co. (PLDT) had 1.84 million subscribers.

"We're playing a major catch up. We can still catch up. They [PLDT] are three years ahead from us," Orlina said.

Given this, the company deployed WiMAX, a technology designed to enable the deployment of wireless broadband access as a cost efficient alternative to cable and DSL.

WiMAX also has improved reach and can cover distances greater than those covered by other wireless technologies like WiFi (wireless fidelity), CDMA (code division multiple access) or 3G (third-generation) technology.

Globe said its network is considered the first and biggest 2.5-gigahertz WiMAX (802.16e) broadband network in South East Asia.

It has about 4,000 subscribers on this network.

For this year, Globe earmarked $150 million for consumer broadband including 3G, out of the total capital expenditure of $350 million to $400 million.

With Internet broadband penetration level of 8 percent to 12 percent, Orlina said there is a big potential for Globe to grow more.

The WiMAX service is initially available in selected areas in South Luzon, National Capital Region, Visayas and Mindanao. The company said it is rolling out WiMAX sites, as a complement to its existing DSL and 3G Internet facilities.

Following its P5-billion retail bond issue in the first quarter, Globe signed an agreement with the Philippine Dealing and Exchange Corp. (PDEx) to list its 3- and 5-year fixed rate bonds due 2012 and 2014, respectively.

The retail bonds will trade in the corporate securities market of PDEx starting June 10.

Globe raised over P13 billion in loans since the beginning of the year. The retail bonds to be listed at the PDEx were issued on February 25, with the coupon rate for the 3- and 5-year notes at 7.5 percent and 8 percent, respectively.

In the first quarter, Globe said it ended with a debt-to-equity ratio at 0.9 and debt to earnings before interest, taxes, depreciation and amortization ratio at 1.1, well within its debt covenants of 2:1 and 3:1, respectively.

"We are pleased that despite the uncertain times, the credit markets continue to have confidence in Globe as evidence by the strong demand for our retain bond issue, which was oversubscribed, and our continued access to credit at very competitive rates," Delfin Gonzalez Jr., Globe chief financial officer, said.

In the first quarter, the company registered a net income of P4 billion, up by 17 percent from the same period last year.

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