NEWS

Globe to spend $300m in Bayan

Monday, Nov 09, 2015

Globe Telecom Inc. plans to spend between $200 million and $300 million over the next two years to modernize its fixed-line infrastructure, including that of Bayan Telecommunications Inc.

“We do have a certain amount of fixed-line. Their [BayanTel] fixed-line cabinets are old. So, we have to fix that because they have a lot of enterprises and consumer subscribers,” Globe chief commercial officer Alberto de Larrazabal told reporters.

De Larrazabal said the first phase of the modernization of Bayan’s fixed-line infrastructure would be in Quezon City, Manila, Cebu and Davao.

Bayan’s broadband and fixed-line voice subscribers last year stood at 144,100 and 174,400, respectively.

Globe owns 98.57 percent of the outstanding capital of BayanTel, after it acquired the remaining stake of the Lopez family in the telecom company for P1.83 billion.

Globe acquired 98.26 percent of BayanTel’s loans and 100 percent of Radio Communications of the Philippines Inc.’s liabilities. RCPI, a unit of BayanTel, is owned by the Lopez Group.

The acquisition cost of $130 million was lower than the $400-million face value of BayanTel.

Globe earlier reported a  core net income, which excludes the impact of non-recurring items, of P8.6 billion in the January-to-June period from P7.6 billion a year ago.

The second-ranked telecommunications company reported a net income of P8.7 billion in the first six months of the year, up from P6.8 billion in the same period last year.

Globe’s consolidated service revenues stood at P53.8 billion, or 13 percent higher than P47.7 billion a year ago, on the strength of robust revenue gains on mobile data and broadband, as more customers adopted a digital lifestyle.

Globe’s fixed-line data business increased 20 percent to P3.1 billion in the first half of the year from P2.6 billion last year, due mainly to the expansion in circuit count and increased usage triggered by strong demand for data connectivity, managed services and cloud solutions.

 

thestandard.com.ph

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