Easycall to raise P11.5 M via rights offer

Paging firm turned business solutions provider Easycall Communications Philippines Inc. is eyeing to raise P11.5 million through a rights offering to improve and expand its Internet-based services.

Based on its prospectus filed with the Securities and Exchange Commission, (SEC), Easycall is offering a total of 11.5 million common shares at P1 per share.

Easycall said it need to invest in new and innovative technologies to enhance the delivery of its current IP-based service to stay alive in the highly competitive industry, now dominated by the large telecommunications companies such as Philippine Long Distance Telephone Co., Globe, BayanTel and Eastern Telecommunications Phils Inc.

In the past three years, small and medium-sized ISP has either closed shop or has consolidated their business and infrastructure with the larger telecommunications companies.

 One of Easycall’s products, the dial-up access is now losing popularity as larger companies offer a faster connectivity option (DSL) at the same cost. “The high turnover of new technology remains as a challenge to the company as technology maximization is part of its current thrust,” Easycall said.

Easycall intends to maintain its modest customer base and offer value-added products and services such as VOIP and web development services.

Other proceeds from the rights issue will be used to support operational requirements of its wholly-owned subsidiary EESI to better service existing clientele.

Shareholders of Easycall include Global E-Business Solutions Inc. (90.15 percent) and Palos Verdes Land Corp. (5.49 percent).