NOW Telecom gears up for the big league with a $713 million investments over the next five years for its 5G fixed wireless access business and plans to list its shares on the local or the regional bourses to fund its medium-term needs.
The company, an affiliate of publicly listed telecommunications, media, and technology firm, Now Corp., has just appointed Unicapital Inc. as financial advisor both for its listing and restructuring.
“We are moving forward with the corporate restructuring of NOW Telecom to take it to the next level,” confirmed Mel V. Velarde, founder and chief executive officer of the NOW Group of Companies.
NOW Corp and NOW Telecom first introduced 5G Broadband speed of up to 2Gbps direct to local enterprise clients.
“Our next move is to extend the service to the residential and the consumer markets,” he added.
The company is deploying its 5G FWA network in the National Capital Region, offering a broadband plan of up to 10 gigabit per second service.
Of its $713 million allocation, the company will use $152 million in the first three years, mostly to acquire new 5G radio equipment.
Parent firm NOW Corp. intends to expand its 5G broadband enterprise services and increases its stake in its telecom affiliate, NOW Telecom.
NOW Telecom focuses on business enterprises, highly dense residential areas, high-end residential homes, and high-rise buildings.
Already, it is well-positioned in the enterprise and high-end residential market.
Last year, NOW Telecom signed an MOU with SK Telecom, South Korea’s largest telecom provider, to design its 5G network.
The company also forged a memorandum of understanding with Singapore-based HyalRoute Group, through local subsidiary Philippine Fiber Optic Cable Network, Ltd. (PFOCN), in connection with shared fiber infrastructure assets nationwide.
In this week’s special board meeting, NOW Corp. approved the offer of existing shareholder, Velarde Inc. to subscribe to 102 million common shares worth P229.5 milion equivalent to 5.75 per cent equity stake in the company plus 60 million non voting preferred shares worth P60 million
Proceeds from the placement are intended for the company’s additional equity infusion in its telecom affiliate, NOW Telecom, and for other general corporate purposes.