GLO. Regulator Tests Put Globe's Network on Top

Highlights

• Globe posted a 99.41% SMS success rate in the NTC's latest Metro Manila tests, the only one of three mobile operators to clear the 99% standard.
• DICT monitoring shows Globe's overall network score rising from 77.2 in January to 82.6 in September, with average download speed up 41%.
• Vini Research Desk rates GLO a Buy, ~60% upside to our ₱2503.00 fair value.

The Setup

Since our Oct. 11 note, Globe has outlined a network push of targeted infrastructure upgrades, faster site deployment in underserved communities, and trials of satellite direct-to-cell technology for areas beyond traditional tower reach. Our momentum read on GLO is Neutral.

Source: news article

Our Read

The 99.41% SMS result is the point that matters: it makes Globe the only operator meeting the regulator's own bar, a measurable quality lead in mobile, Globe's core earnings line. The steady improvement in DICT scores this year suggests the lead reflects sustained network investment rather than a one-off test result. The stock sits much nearer its 52-week low than its high, so the current price gives Globe little credit for that edge.

Vini Research Desk rates GLO a Buy, seeing about 60% upside to our fair value of ₱2503.00. A widening network-quality lead supports future dividend growth and capital appreciation, which benefits holders of the Passive Income Plan and Smart Momentum Quant Plan.

What We're Watching

• Third-quarter results, for mobile data revenue and subscriber trends
• A partner and commercial timeline for satellite direct-to-cell
• The next NTC quality round, to confirm Globe holds above 99%