Globe Telecom Banking On Bayantel Investment To Boost 2013 Results

14 February 2013

Globe Telecom Inc. is counting on its Bayan Telecommunications Inc. (Bayantel) investment, its modernization initiatives as well as prospects of getting a new 3G frequency, to boost this year's performance, President and CEO Ernest L. Cu declared yesterday.

"Our ongoing network transformation program, coupled with the Bayantel tender offer and our intention to bid for the 10MHz 3G frequency held by CURE (Connectivity Unlimited Resource Enterprises, Inc.) give us more than enough prospects to remain a formidable player in an increasingly competitive environment," he reiterated.

As a strategic initiative to ensure long-term business competitiveness, Globe and Bayantel also obtained approval from the National Telecommunications Commission (NTC) for joint-use of the frequencies in the 1800 MHz band assigned to Bayantel.

This would help Globe address the increasing demand for voice, short message and mobile data services.

Last December, Globe completed a tender offer acquiring over 96% of all existing and outstanding debt of Bayantel and its subsidiary Radio Communications Philippines Inc. (RCPI) as part of its efforts to acquire a significant share in the Lopez-owned company.

Globe started separate discussions with controlling shareholders of Bayantel to acquire an equity interest in the latter.

On its own, Bayantel continued to improve its financial bottom line as it recently disclosed an 8 percent rise in core revenues to P5.22 billion in 2012 as a result of a substantial growth in its data and voice businesses.

Globe also plans to join the bid for CURE's 3G spectrum, which PLDT was ordered to surrender in compliance with the NTC's conditions when it approved the PLDT-Digitel merger in 2011.

NTC Commissioner Gamaliel Cordoba recently announced that they had already finished the Terms of Reference (TOR) for the CURE bid, and are in the process of determining the Cost Recovery Amount (CRA) through independent auditors.