NOW Telecom bares $713 million expansion plan

MANILA, Philippines — NOW Telecom plans to spend $713 million for its five-year 5G fixed wireless access (FWA) business plan.

It aims to deploy 5G FWA network in the National Capital Region and offer a broadband plan of up to 10 gigabit per second service, which is a 10-fold increase to the company’s current offering.

Of the $713 million, $152 million will be needed in the first three years. Most of the capex will be used to acquire 5G new radio equipment.

The company expects to raise capital through various fundraising exercises.

NOW hopes to build on its current markets such as business enterprises, highly-dense residential areas, high-end residential homes and high-rise buildings.

“NOW is well positioned to take advantage of the opportunity in the enterprise and high-end residential market in the Philippines via 5G FWA. With fairly limited competition in this space, there is a strong opportunity for NOW to gain a profitable market share, at first in NCR,” newly appointed NOW Telecom president and chief operating officer Rene Rosales said.

“Our affiliate NOW Corp. has a deep understanding of the role of ICT in enterprises and we are in a position to become the end-to-end service provider for both ICT and broadband services,” he said.

Last year, NOW Telecom signed an agreement with SK Telecom, South Korea’s largest telecom provider, to help the company design its 5G network.

It also entered into agreements for various projects with Vietnam’s leading telco, Viettel.

NOW Telecom has a franchise to construct, install, establish, operate and maintain, lease, purchase, and carry on the business of providing telecommunications including electronic communications and electronic communications services throughout the country as well as between the Philippines and other countries and other territories.

“In all these years, we survive and succeed on the basis of a clear and highly differentiated competitive strategy: by being intensely focused on addressable and profitable target customers, and by building a wireless broadband network with cutting-edge technologies,” NOW founder, president and chief executive officer Mel Velarde said.