A mission to connect the Philippines
IN TODAY’S digital era, internet connectivity is crucial for accessing education, health care, business and government services. Due to geographical challenges, the Philippines faces a SIGNIfiCANT DIGITAL DIVIDE, ESPECIALLY IN REMOTE AREAS.
As of February 2023, the Philippines has 85.16 million internet users, representing 73.1 percent of its population. However, internet access distribution is uneven. While the National Capital Region has an 83 percent internet penetration rate, the Bangsamoro Autonomous Region in Muslim Mindanao has just 7 percent.
This disparity highlights the need for equitable internet access for all Filipinos. In response, innovative collaborations and investments in technology solutions have emerged.
The partnership between Globe, the nation’s leading mobile operator, and Transcelestial, a Singapore-based company building wireless laser communications technology, holds immense promise for advancing digital connectivity across the Philippines.
Bringing these two companies together is Kickstart Ventures, Globe Telecom’s corporate venture capital arm, which manages the Ayala Corp. Technology Innovation Venture (Active) Fund, where Globe is one of its esteemed limited partners. In this dynamic, Kickstart Ventures acts as a trailblazer within the Globe and Ayala ecosystem, scouting and introducing paramount innovations globally via venture capital investments and strategic engagements, as exemplified in the partnership of Transcelestial and Globe.
Driven by the Active Fund’s vision for a frictionless future, the synergy between Transcelestial and Globe marks a pivotal move in bridging the digital divide in the Philippines. This collaboration leverages Transcelestial’s cutting-edge technology to bolster connectivity, particularly in remote regions, empowering Globe to broaden its influence and bring about positive change in various communities.
The union of Transcelestial and Globe reaffirms Kickstart’s investment strategy and transitions it from a thesis to a tangible commercial partnership. Moreover, this partnership underscores the merits of having a domestic investor with a robust grasp of the local market and access to pivotal partners like Globe, enhancing the cap table’s value.
Understanding Transcelestial, Globe
Globe has consistently led the charge in enhancing connectivity across the Philippines. This evolution from a traditional telecommunications company to a technology-centric organization underscores their dedication to innovation and addressing practical challenges.
The transition is evident in Globe’s expanded range of services, encompassing fintech, virtual health care, e-commerce, business outsourcing, adtech, edutech, climate tech, and the media and entertainment sectors.
Singapore-based Transcelestial, on the other hand, is set to revolutionize how we connect the next billion people. Its groundbreaking solutions offer a powerful complement to Globe’s existing infrastructure.
Transcelestial uses modulated infrared lasers to transmit highspeed data wirelessly over long distances without fiber. Its laser beams can carry bandwidth-intensive data at fiber-comparable speeds over tens of kilometers, enabling cost-effective connectivity in remote areas.
Transformational partnerships
The partnership between Transcelestial and Globe harmoniously converges their respective objectives.
Globe is dedicated to expanding digital access (4G and 5G), particularly in regions starting with locations in the Visayas and Mindanao, such as Bacolod, Negros Occidental, Panaon Island, Davao City (Samal Island) and Zamboanga. Transcelestial is on a mission to revolutionize connectivity with its cutting-edge technology.
Transcelestial’s innovative technology offers a rapid evolution. Its compact, shoebox-sized Centauri devices, weighing less than 3 kilograms, can be rapidly deployed, making them ideal for challenging locations where traditional infrastructure is impractical.
This is particularly relevant in regions like the Visayas and Mindanao, known for their complex geography. They are characterized by numerous islands, mountains and rural areas that present formidable obstacles to laying down fiber-optic cables and erecting conventional cell towers for internet connectivity.
In the denser parts of these islands, specifically within cities and towns, obtaining the right of way — which involves securing legal permission to install infrastructure on private land — becomes increasingly complex. Additionally, in these areas, overhead fiber cables are susceptible to typhoon damage, further complicating the situation and posing safety risks.
Transcelestial technology, exemplified by the Centauri device, operates on the principle of wireless optical transmission. It utilizes a narrow optical beam with a unique pointing, tracking and acquisition system capable of transmitting data at up to 10 Gbps for multiple kilometers.
This laser-based approach eliminates the need for complex physical infrastructure, such as microwave antennas and fiber-optic cables, offering a cost-effective, super-high bandwidth and swift installation solution, even in challenging environments.
The Centauri, equipped with Transcelestial’s proprietary pointing, tracking and acquisition system, and software-defined sensors and algorithms, allows connectivity to be reliable in adverse weather conditions, which is crucial for mobile operators to maintain high service reliability.
“From day one, working alongside Globe has been a journey of shared vision and mutual dedication. Our collaboration is deeply rooted in a commitment to transform the digital landscape of the Philippines, ensuring equitable access to information and opportunities across the archipelago,” remarked Dinesh Kummaran, head of Sales Asia Transcelestial.
“Together, we are currently working to significantly expand our business footprint, aiming to amplify our project scale by more than tenfold from our current capacity. By combining Globe’s extensive network with our cutting-edge laser communication technology, we are setting new benchmarks for what’s possible, bringing us closer to a future where every Filipino has the world within their reach. It’s been an honor to be part of this revolutionary journey from the very beginning, and I am inspired by the passion and commitment of both teams as we work towards achieving a truly connected Philippines.”
Perfect synergy, perfect timing
The decision to partner with Transcelestial was not arbitrary; it was a strategic choice based on clear criteria. The partnership had to deliver direct impact, scalability and resource alignment.
Globe recognized that Transcelestial’s technology met these criteria perfectly and supported investments from Kickstart right from the earliest interactions. By choosing the right partner at the right time, Globe has positioned itself to make a lasting impact on bridging the digital divide.
“We want to ensure that Globe is at the forefront of giving Filipinos the necessary internet connectivity, from the densest metros to hardto-reach forests, islands and mountains,” said Je Escarcha, Globe’s Access Transport Planning head.
Kickstart Ventures played a pivotal role in identifying and nurturing this collaboration. Its commitment to strategic and impactful investments has paved the way for groundbreaking initiatives like the Transcelestial-Globe partnership.
Key stakeholders express enthusiasm about the partnership, highlighting its significance in the wider digital transformation journey of the Philippines.
Toward a digitally empowered future
Internet connectivity has evolved from a luxury to a fundamental need today. Partnerships like the one between Globe and Transcelestial are essential in meeting this need and creating a frictionless future.
Kickstart Ventures, Transcelestial and Globe leaders all share a vision for a more connected and digitally inclusive Philippines.
As we look ahead, the role of strategic partnerships in bridging digital divides and fostering a technologically advanced society cannot be overstated.
This collaboration serves as a beacon of hope, illuminating the path toward a future where all Filipinos can harness the benefits of the digital age.
A vision for the future
Globe is poised to significantly expand its impact, aiming to enhance its broadband market presence alongside mobile coverage.
“Our transformation from Telco to TechCo is underway. With Transcelestial, the next-gen solutions Globe’s building toward has the opportunity to be delivered at the speed of light,” said Escarcha.
With data usage growing, Transcelestial’s scalable laser technology could allow for higher bandwidths, fostering a digitally inclusive future in the Philippines.
“This partnership with Transcelestial is a prime example of how innovation and teamwork can drive societal change. By confronting the digital divide, we’re improving internet access, enabling educational and economic growth, and promoting digital empowerment. We remain excited to run full speed with Transcelestial on this transformation and are wildly excited by some of the amazing possibilities they are pulling together next with their 25 Gbps and emerging capabilities in space,” added Escarcha.
This collaboration powerfully showcases technology’s ability to surmount geographical barriers, fostering a more connected, inclusive Philippine society. It highlights advanced technology and joint efforts in driving digital transformation and inclusion in the Philippines and worldwide.
By embracing such technology and fostering partnerships, businesses, and innovators can actively participate in shaping a digitally inclusive future. Together, they can pave the way for a brighter, more connected future for all Filipinos.