Globe Telecom Inc. has set its 2010 capital expenditure (capex) at USD$500 million, at par with last year’s levels, with the bulk, or 46 percent, $230 million in broadband where it expects the highest growth and just 34 percent, or $170 million in its mobile concern, well within the benchmark of a mature business, disclosed President and CEO Ernest L. Cu.

Some 10 percent, or $50 million, of the capex will go to a one-time investment in Globe’s $70-million Fiber Optic Backbone Network 2 (FOBN2) completed three months ago, the $9- million TGN Intra Asia Cable system and the $60-million SEA Japan Cable system. The remaining 10 percent, or $50 million, will be allocated for fixed line data and others.

“We are cautiously optimistic for 2010,” he acknowledged. “The growth of our mobile business will mirror the growth of the economy. Industry growth will be at a low to mid-single digit, in line with the projected Gross Domestic Product growth of 2.5 to 5 per cent. Mobile telephony EBITDA (earnings before income tax, depreciation and amortizations) margins will be at mid-60’s.

Because the mobile market is mature, hauling in new subscribers will no longer mean an increase in revenues, he pointed out. The Philippines cellular phone penetration rate stands at around 80 percent, with 70 to 80 million SIMS industry-wide, of which up to 34 percent are multi-SIMS. “But there are still opportunities in the low ARPU market, in the SIM wallet and in broadband.”

In fact, the growth will be more dramatic for broadband, Cu predicted. “The broadband industry will double from last year’s 2.5 million subscribers to 5 million this year. Globe aims to grow its subscriber base to 1.3 million by this year-end. Our subscriber growth will come mostly from fixed wireless (WIMAX) and pre-paid nomadic segments.”

Overall, he expects Globe’s consolidated revenue will grow at a low to mid-single digit levels. Consolidated EBITDQA margins will be at mid to high 50’s. The company is focusing on three key priorities for 2010, he underscored: Gaining share of the wallet in mobile business, sustaining its growth momentum in broadband and corporate data and network quality as a competitive differentiator.

“We are enhancing the appeal of Globe, Tattoo and Touch Mobile brands to their target markets. We want to drive usage and increase the frequency of availment,” Cu explained. Along with this Globe is strengthening its loyalty and retention programs as well as its customer service.