Globe Telecom

Globe Telecom, Inc.

Type	Public company (PSE: GLO)
Industry	Communications services
Founded	Manila, Philippines (1935)
Headquarters	Mandaluyong City, Philippines
Key people	Jaime Augusto Zobel de Ayala II, Chairman Ernest L. Cu, President and CEO
Products	Broadband services Cellular telephony Fixed-Line telephony
Revenue	US$ 1.2 billion (4%) (as of Q1 2010)
Net income	US$ 276.2 million (14%) (as of Q1 2010)
Website	www.globe.com.ph

Globe Telecom (PSE: GLO), commonly known as Globe, is a telecommunications company in the Philippines. Globe provides mobile, fixed line, and broadband Internet services.

History

In 1928, Congress passed Act No. 3495 granting the Robert Dollar Company, a corporation organized and existing under the laws of the State of California, a franchise to operate wireless long distance message services in the Philippines. The Robert Dollar Company subsequently incorporated in the Philippines as Globe Wireless Limited and in 1934, Congress passed Act No. 4150 transferring the franchise and privileges of the Robert Dollar Company to Globe Wireless Limited.

Globe Wireless Limited was subsequently renamed Globe Mackay Cable and Radio Corporation. Congress, through Republic Act 4630 enacted in 1965, further expanded its franchise to allow it to operate international communications systems. Globe Mackay Cable and Radio Corporation was closed in the Philippines by Martial law. Shortly before the expiration of its franchise, the Batasan Pambansa in 1980 enacted Batas Pambansa 95 granting Globe Mackay Cable and Radio Corporation a new franchise.

On June 15, 1990, Isla Communications Co., Inc. (Islacom) was incorporated. Through Republic Act 7372, Islacom was authorized to develop full-service telecommunications network in the country.

In 1991, Globe Mackay was subsequently merged with the Clavecilla Radio Corporation. Globe Mackay as the surviving company was renamed GMCR, Inc. and on March 19, 1992, the Philippine Congress passed Republic Act 7229 approving the merger and the transfer of the franchise of Clavecilla Radio Corporation to the surviving company to be renamed GMCR, Inc.

In 1994, Islacom launched the country's first digital mobile communication services using GSM world standard digital technology.

On August 20, 1998, the Philippine Securities and Exchange Commission (SEC) approved the change of name of GMCR, Inc. to Globe Telecom, Inc. (Globe).

On February 22, 2000, Globe and its principal shareholders Ayala Corporation (AC) and Singapore Telecom International Pte. Ltd. (STI), a wholly owned subsidiary of Singapore Telecom (ST), and Islacom and its principal shareholders Asiacom Philippines, Inc.(Asiacom) and DeTeAsia Holding GmbH (DeTeAsia), a wholly owned subsidiary of Deutsche Telekom AG (DT), entered into a general agreement for a combination of the business and operations of Globe and Islacom.

The old Globe corporate logo.

On June 27, 2001, Globe completed the share swap transaction with Islacom, which effectively made Islacom a 100%-owned subsidiary of Globe.

In September 2002, Globe announced the operational integration of Globe and Islacom's wireless networks. A key element of the integration involves the migration of existing wireless subscribers of Islacom to the improved Touch Mobile (TM) service.

On August 7, 2003, the National Telecommunications Commission (NTC) approved the legal transfer of Globe's wireline business, authorizations, properties, assets and obligations to Islacom.

On August 25, 2003, the SEC approved the change in name of Islacom to Innove Communications, Inc. (Innove).

On March 30, 2007, Globe Telecom, through its president and chief executive Gerardo Ablaza Jr. said it is diversifying from its core business to take advantage of the booming broadband business. Ablaza said the company would increase its investments in cable systems and wire lines to build its broadband Internet infrastructure. Industry analysts have viewed Globe's plan to invest in cable systems as a strategy to compete more aggressively with Philippine Long Distance Telephone Company (PLDT), which took advantage of its wire line infrastructure to diversify into broadband business. END

Ownership

• SingTel - 47%
• Ayala Corporation - 32%
• Public Stock - 21%
• PRIVATE - 1%

Competition

Globe's main competitor in the fixed-line telephone market is PLDT. In the mobile telephony market, its main competitors are Smart Buddy and Talk N Text brands of Smart Communications, a wholly owned subsidiary of PLDT, and Sun Cellular, the brand owned by Digitel. PLDT bought about 51% shares of Digitel in March, 2011. The merger plans to keep Digitel and Smart Communications products separate.

Globe gets bigger share over Smart and Sun Cellular in the corporate and foreign market. It places second in the prepaid and postpaid local personal lines market.

Services

Globe has rolled out Globe broadband powered by WiMAX (Worldwide interoperability for Microwave Access). Globe's network is considered the first and biggest 2.5 GHz WiMAX (802.16e) broadband network in South East Asia. It is first in the Philippines to commercially launch a consumer WiMAX offering. Currently, Globe has around four thousand subscribers on its WiMAX network, after only a few weeks. The service is initially available in selected areas in South Luzon, Metro Manila, Visayas and Mindanao. Globe continues to roll-out WiMAX sites, as a complement to its existing DSL and 3G Internet facilities, to ensure the internet gets to every Filipino who needs it. Globe is providing WiMAX to selected local community government offices in Cavite, Batangas and Cagayan de Oro City. Globe is also providing Internet access via WiMAX to selected schools and city hospitals in Mindanao as part of its thrust of community service to the marginalized areas.

Globe has been expanding its wireless broadband network to accommodate the increasing demand for the Internet. In 2009, Globe introduced Globe Tattoo and Globe broadband powered by WiMAX (Worldwide interoperability for Microwave Access). In June 2009, the company launched hyper-speed plans via fiber-to-the-home technology.

Globe Telecom brought iPhone 3G to the Philippines on August 22, 2008.

With Globe broadband Tattoo, users can experience speeds of up to 2 Mbit/s, delivered via 3G and High-Speed Downlink Packet Access (HSDPA).

SulitChat is Globe's messaging offer to subscribers who never want to be disconnected from their chatmates and/or textmates. It allows them to continue sending messages complete with emoticons even in the absence of a laptop or personal computer.

GCASH Remit, remittances delivered straight to Globe or TM phone in response to Filipino expatriates and overseas Filipino workers growing needs.

GCASH Click answered the need for a more secure mode of payment for Internet buys. It’s a new payment option for merchants and consumers transacting on the web, which assures security and confidentiality.

Duo allows subscribers unlimited calling to and from any landline number, as well as, unlimited calling to and from any Globe DUO postpaid mobile subscriber.

Super Duo is an upgrade of the Globe Duo service. It is an unlimited mobile-to-landline call service, which also enables subscribers to make unlimited calls to any Globe, TM and Tattoo mobile numbers within the Philippines.

Super Surf is an unlimited mobile Internet browsing service which enables subscribers to gain unlimited access to surf, e-mail, chat and blog from mobile phones, laptops or desktop computers.

Super Unli is a service that provides unlimited Globe to Globe/Tattoo/TM text and calls for 7 days or 1 day.

Globe IPv6-in-IPv4 Tunnel Service is a service that provides public access to IPv6 websites.

Globe Tattoo Tonino Lamborghini Trademark Controversy

Globe Telecom launched the Tattoo Tonino Lamborghini Broadband Stick on June 1, 2011, a HSPA+ capable device allowing broadband network speeds of up to 10Mbps.

Last Aug. 23, the Italy-based company Tonino Lamborghini s.r.l. published a press release on their website, reprinted in full:

Tonino Lamborghini s.r.l., an Italy-based company which is the sole lawful owner worldwide of the trademark "Tonino Lamborghini" hereunder wishes to inform its customers that unauthorized people are currently trading online and through Globe stores a "4G Tatto Tonino Lamborghini" broadband stick which is a counterfeited product. Tonino Lamborghini s.r.l. has never manufactured or authorized anyone to manufacture such a product which constitutes therefore a serious trademark infringement. Moreover the advertising campaign "Feed your need for speed" featuring Marlon Stockinger, first Filipino to win a formula race in Europe, is deceitful and unlawful since it leads to a serious likelihood of confusion between two different and separate brands and businesses that is to say "Tonino Lamborghini" and "Automobili Lamborghini". Tonino Lamborghini s.r.l. shall take any legal action to protect the brand."

Yours faithfully,

Dott. Gian Luca Filippi Tonino Lamborghini s.r.l. CEO

In response to this claim, Globe issued an official statement posted on their Tumblr page for Globe Tattoo, reprinted below:

Globe Telecom obtained authorization to use the name and logo Tonino Lamborghini through an agreement with Primo Mobile, the master franchisor of mobile phone related products for the Italian brand Tonino Lamborghini. PrimoMobile is a Singapore-based company that has a master license agreement with Tonino Lamborghini s.r.l. and is duly authorized to sub-license the use of the Lamborghini logo. The design of the Globe Tattoo Tonino Lamborghini 4G USB sticks was reviewed and approved by Primo Mobile.

Globe Telecom assures the public of its strong adherence and commitment to the highest ethical standards in business and good corporate governance. The company will not engage in any activity that will mislead the public in the course of doing business and serving its customers.

Again, Tonino Lamborghini replied to Globe’s statement which they posted on their Facebook Page as follows:

Tonino Lamborghini Group wishes to clarify that Primo Mobile had been granted only a trademark license – neither a master license nor a master franchise – but such trademark license agreement was duly terminated by the licensor, Tonino Lamborghini s.r.l., some months ago. In any case, such trademark license agreement did not authorize Primo Mobile to sub-license the use of the Tonino Lamborghini trademark and logo.

On September 4, 2011, with Tonino Lamborghini threatening a lawsuit, TV5's InterAksyon news website published that Globe Telecom, Inc. has temporarily ceased marketing and selling the Tonino Lamborghini broadband stick according to its spokesperson, Yoly Crisanto, adding that the company would rather wait until they have fully clarified the matter with Italy-based Tonino Lamborghini.

In an online news article by GMA News Online on September 5, 2011, it mentioned that Globe denies pulling Tonino Lamborghini 4G sticks off the market. A spokesperson for Globe stated:

Customers who wish to purchase the Tattoo Tonino Lamborghini sticks may visit www.tattoo.globe.com.ph to know the Globe store nearest them.

Globe area codes

- 905
- 906
- 915
- 916
- 917
- 926
- 927
- 935
- 936
- 937
- 996
- 997
- 817

Network information

CDMA2000: Globelines
GSM: 515 01/PH 01/PH Isla/Isla (inactive), 515 02/PH 02/PH Globe/GLOBE
EDGE: 515 02/PH 02/PH Globe/GLOBE
UMTS: 515 02/PH 02/PH Globe/GLOBE

SMS Centers:
+639150200003 (Islacom)
+639170000130 (Globe/TM)

See also

• Ayala Corporation
• Globe Handyphone
• IPv6 Deployment
• TM (Touch Mobile)

External links

• Globe Telecom's website