In its Board Meeting held on October 3, 2022, the Board of Directors of PSE-listed NOW Corporation authorized the management to initiate negotiations with News and Entertainment Network Corporation (NEWSNET) to acquire equity ownership in NEWSNET, an interactive pay television and multimedia services company assigned with the coveted 26Ghz spectrum. This is part of the NOW’s thrust to expand, consolidate and strengthen its core business, subject to applicable regulatory approval from regulatory agencies and government bodies.
NEWSNET has an authority from the National Telecommunications Commission to install, operate and maintain in the 25.35GHz to 26.35 GHz spectrum band Local Multi-Point Distribution System (LMDS) to deliver interactive pay television and multimedia services in Metro Manila and parts of South Luzon, North Luzon, Visayas and Mindanao. Recent Court of Appeals decisions resolved the rights of NEWSNET over the said 5G frequencies and upheld NEWSNET’s authority to operate Interactive Pay TV and Multimedia Services.
This strategic move to acquire NEWSNET will upgrade NOW Corp’s existing Fiber Air network to 5G - 26 GHz to deliver interactive pay television and multimedia services, laying the foundation for the intensive synergy with its affiliate NOW Telecom Company, Inc. The latter has the license to operate nationwide mobile telephony services (MTS) not specific to 3G, meaning including 5G and Satellite direct to mobile devices, homes and enterprises.
“The potential acquisition of NOW Corp of NEWSNET achieves two objectives. First, the increase of capacity, from 2.4Gbps per existing base station to 9Gbps, an almost 500% increase. This GIGABIT capacity shall be enjoyed by residential, enterprise and vertical markets. Second is the increase of area coverage over Metro Manila, currently in 50 market areas and expanding in some parts of South Luzon, North Luzon, Visayas and Mindanao.” says Francis Xavier L. Manglapus, Vice-Chairman of NOW Corporation during a press briefer held in EDSA Shangri-la Hotel.
“The demand for larger capacity and higher speeds with better latency is expected to increase over time. At a technological point of view, the upgrade of our network is expected to unleash the full potential of 5G – higher capacity, faster downloads and uploads, low latency. With more and more collaborative software being used by companies and workers adopting hybrid set-up, our network will be geared towards addressing those needs,” says Rene L. Rosales, Chairman of NEWSNET.
The synergy of the companies under NOW Group shall be intensified even prior to the final closing of this announced intention for acquisition. Simultaneous with the board approval, NOW Corp, NOW Telecom, and NEWSNET with NOW Cable, Inc. signed a Memorandum of Agreement creating a common digital infrastructure for internal, private, and public sectors’ use, streamlining their operations, optimizing their network utilization, and leveraging on shared services and resources. This Digital Infrastructure shall service the NOW Group and Private/Public organizations creating a digital eco-system that share common values of digital sovereignty, equity, accessibility, affordability and other human benefits derived from modern technologies in free and democratic societies.
The same parties plan to increase their current 50 market areas up to a total of 150 market areas in Mega Manila and expand further on a nationwide basis through collaboration, joint venture, Built Operate Transfer Projects (BOT), Private-Public Partnership (PPP), etc. with local community organizations such as local government units (LGUs), electric cooperatives, cable tv operators, internet service providers (ISPs), broadcasters, real estate developers, state universities (SUCs) and colleges, and other community-based organizations.
The Asian Institute of Journalism and Communication (“AIJC”), was tasked in the same agreement to provide research consultancy, professional development programs and communications outreach programs to local communities with the goal of assisting them to plan, design, and build their own wire and/or wireless communications network and connect to NOW Group’s 5G Digital Infrastructure. “Given the Mandanas Law implementation, LGUs should build, operate and maintain their own fiber optic network. They are the ones issuing the permits anyway. We at NOW Group will provide them all the services they need. Why allow local revenues from telecom services leave the localities? Local revenues must stay local,” asserts Raul L. Manglapus Jr., NOW Telecom Vice-Chairman. The NOW Group is composed of NOW Corp, NOW Telecom, NEWSNET and NOW Cable.