CORPORATE internet services provider Now Corp. will expand its broadband infrastructure in Metro Manila with pre-5G technologies to deliver its Internet and cable-television connectivity to enterprises, earmarking P500 million for the said initiative.
In a filing to the stock exchange, Kristian Pura, who heads the enterprise-marketing unit of Now Corp., said his group will use millimeter waves and full time-division duplexing technologies to roll out its broadband infrastructure in the capital.
Shares in Now Corp. added 4 centavos to close at P2.30 apiece on Wednesday’s disclosure.
“We have successfully tested two of ZTE’s latest wireless equipment with a capacity of 480-megabit-per-second and 3-gigabit-per-second links—connecting almost ten times faster than any backhaul,” Pura added. “They have been installed to paying customers, and we shall connect current and new hubs.”
Now Corp. President Mel V. Velarde has said the company will be adopting an all-wireless network plan due to trends relating to frequency-enabled services abroad.
“By utilizing gigabit links on fixed wireless setup, the company sees no need to deploy fiber optic in the early stages of its network buildup. The positive economic effect is that the financial requirement of the company’s five-year business plan has been adjusted from P1.5 billion to P500 million. The company, however, is prepared to scale upward its all-wireless network plan as when the need arises,” Velarde said.
By the end of its half-decade broadband buildup program, Now Corp. should have a subscriber base of about 250,000, he added.
Velarde also announced the company’s board has given its nod to the management’s plan to amend its application for 15 million preferred shares offering with 30 million warrants to 5 million preferred shares and 30 million warrants, thus lowering the expected use proceeds from P1.5 billion to P500 million.
The decision to lower the planned shares offering was “due to the fact that the company’s fixed wireless broadband rollout as spelled out under the all-wireless network plan would no longer require capital spending of as much as P1.5 billion”.
The newly approved plan would instead require a capital of just P500 million for the broadband rollout.
Velarde noted that company’s network is “very scalable in preparation for a bigger play”.
“In the early stages of our network buildup for the delivery of broadband technology, we don’t need to dig grounds for hard fiber deployment, which is very expensive. We will be utilizing tested wireless technology that delivers millimeter waves wireless gigabit links direct to customers’ rooftop,” he said.