Globe sees better year with Bayan partnership

GLOBE Telecom Inc.’s recent investments in infrastructure and network upgrades, as well as moves to acquire an equity interest in Bayan Telecommunications Inc. ( Bayantel), have positioned the company for a strong performance this year.

“Our ongoing network transformation program, coupled with the Bayantel tender offer and our intention to bid for the 10-megahertz [Mhz] third generation [3G] frequency held by CURE, give us more than enough prospects to remain a formidable player in an increasingly competitive environment,” said Ernest Cu, president and chief executive officer of Globe.

The company is in the midst of a $700-million network modernization program that will increase network capacity and resiliency and accommodate more voice, short message service, and data traffic. The first phase of the network upgrade is on track with 88 percent completion in various cell sites all over the country.

As a strategic initiative to ensure long-term business competitiveness, Globe and Bayantel also obtained approval from the National Telecommunications Commission (NTC) for joint-use of the frequencies in the 1800 MHz band assigned to Bayantel.

In December, Globe successfully completed a tender offer to acquire over 96 percent of all existing and outstanding debt of Bayantel and its subsidiary RCPI, as part of its efforts to acquire a significant share in the Lopez-owned company.

Globe also announced that it had commenced separate discussions with the controlling shareholders of Bayantel, which includes Globe’s plans to potentially acquire an equity interest in Bayantel.

On its own, Bayantel continued to improve its financial bottom line as it recently disclosed an 8-percent rise in core revenues to P5.22 billion in 2012.