NOW Telecom recently executed a memorandum of understanding (MOU) with Singapore-based HyalRoute Group, through local subsidiary Philippine Fiber Optic Cable Network Ltd. (PFOCN), which industry analysts see as the former’s initiative to become the country’s fourth telecommunications company.
The multinational is investing between $1 billion and $2 billion to roll out a fiber optic cable network in the Philippines. This will then be rented out to telcos, Internet service providers and cable television operators, among others.
In a previous regulatory filing, NOW Telecom’s affiliate and listed firm NOW Corp. disclosed that PFOCN and NOW Telecom will tie up on the commercial aspects of shared fiber infrastructure assets across the nation, including access to fiber optic cores and other related facilities.
According to NOW Telecom, both parties intend to collaborate on the fiber optic cable network rollout that will beef up and support NOW’s further expansion.
Newly elected NOW Telecom President Rodolfo Pantoja said in a chance interview that their tie-up with HyalRoute and PFOCN will accelerate their deployment on a national scale via the availability of a nationwide transmission backbone.
He explained that when coupled with their fixed wireless capability for the last mile and using spectrum exclusive to it, NOW Telecom can reach consumers faster than a pure fiber-based broadband provider at a fraction of their capital expenditure. This will result in more compelling broadband offers, he added.
The top executive said their collaboration will open to NOW Telecom underserved markets that are now prohibitive due to the huge capital expenditures needed.
The presence of a provider-agnostic fiber operator solves one of the key infrastructure elements of NOW’s 5G or fifth-generation wireless technology plan and allows it to launch truly disruptive 5G offerings, he noted.
“The nationwide backbone [of HyalRoute-PFOCN] allows us to replicate our success in Metro Manila with guaranteed throughput broadband services that continue to resonate with enterprises especially those where availability of reliable broadband is mission-critical,” Pantoja said.
Now Telecom earlier revealed plans to offer 5G that will allow the delivery of up to 20 gigabit per second speed to enterprises and homes.
The company’s president said 5G will enable high wireless bandwidth in low latency scenarios, allowing for further complex technologies to exist.
“5G is necessary for the Internet of Things to thrive. With cloud computing, you can now decentralize the business of telecommunications,” Pantoja said.
DICT open to 4th, 5th telco
With its impending partnership with HyalRoute and PFOCN, analysts say that Now Telecom is in the best position to be the country’s fourth telco.
Information and Communications Technology Secretary Gregorio Honasan has said that he was open to a fourth or even a fifth telco.
The right to become the country’s third telco, after PLDT-Smart Communications and Globe Telecom, was won by China Telecom-backed Dito Telecommunity, formerly Mislatel consortium.
The DICT, which has also signed a memorandum of agreement with PFOCN, said in an earlier statement that the latter’s investment will address the need to extend the fiber optic network to rural areas, which local telcos cannot cover at the moment because these areas are considered nonviable.
Media reports quoted HyalRoute Chairman Huang Xinglong saying that this investment project will greatly improve the status of communication infrastructure, particularly fiber network, while improving broadband penetration rate and speed to meet the needs of the general public.
The Philippine rollout of PFOCN will be done in phases starting this year until 2028. The company will be giving preferential rates to the government for its free Wi-Fi and National Broadband Program. The rest of its capacity will be leased to other players.
ALT Global Solutions, one of the 24 telecommunications tower-sharing companies that have signed an MOU with the DICT, reported two months ago that it has also inked a pact with NOW Telecom for the provision of shareable telecom infrastructure.
In a previous media interview, ALT Global Director Sherwin Hing said that while they have so far signed with NOW Telecom, they are talking to all three major mobile network operators.
For him, a partnership with ALT Global will allow telcos to utilize their shared tower infrastructure to enable rapid deployment of cellular equipment, and in some areas, increase cellular density in preparation for 5G.
A cellular mobile telephone system licensee, NOW Telecom has a 25-year congressional franchise to provide telecommunications services all over the Philippines.