Now Telecom allots P2-B for capex
MANILA, Philippines – Now Corporation's telecommunications arm Now Telecom Company Inc. is allotting an estimated P2 billion in capital expenditures to expand its SMS and broadband network in Metro Manila and nearby provinces until 2016.
Now Corporation president and chief executive Mel Velarde said the company will spend P1.26 billion to activate its all-text GSM network and another P900 million to build its broadband access.
Now Telecom, however, has yet to finalize how it will raise the funds.
The firm is looking at raising 50 percent of the entire amount from borrowings and the other 50 percent from equity contributions.
“We are looking at various options one is raising shares in the market and the other one is through borrowing. We are looking at raising P1 billion or the entire amount immediately,” Velarde said.
He added that three investment banks have expressed interest in raising the amount needed by Now Telecom.
Velarde said the company is set to offer unlimited text within the Now Telecom network at P3 per day.
Ayala-led Globe Telecom Inc. offers unlimited text at P7 per day while Smart and Sun offer P6.66 per day and P5 per day, respectively.
Over the next five years, Now Telecom expects its subscriber base to reach 2.9 million.
Now Telecom expects P1.6 billion in revenues from its all-text mobile network and P8.4 billion from its broadband service.
Now Telecom’s revenues increased to P79.31 million in 2013, a 59 percent jump from the P50.01 million in 2012.