PLDT closed the year at P1,480, flat and significantly lower than June 15, 2017’s level of P1,900 per share.
Source: https://www.facebook.com/BloombergTVPh/videos/2114210122149073/?t=1343
Source: https://www.facebook.com/BloombergTVPh/videos/2113774152192670/?t=1293
UPDATED 3:30 p.m. / 23 February 2018
Now Telecom Co. Inc., formerly Infocom Communications Network Inc., has secured an extension of its congressional franchise to build and operate a telecommunications network until 2043.
President Rodrigo Duterte signed into law Republic Act 10972 on February 22, which renews the franchise of Now Telecom for another 25 years.
The law specifically grants Now Telecom “a franchise to construct, establish, operate and maintain mobile radio systems such as radio, paging systems, cellular phone systems, personal communication network, and trunked radio systems within and without the Philippines.”
Now Telecom, which is about 19 percent owned by publicly-traded Now Corp., is among those vying to become the country’s third telco firm, which the Duterte administration hopes will soon break the PLDT Inc. and Globe Telecom duopoly.
The Department of Information and Communications Technology (DICT) has set the tentative bid deadline for the country’s third telecommunications player on May 18, 2018.
Now Corp. CEO Mel Velarde, who shared the news in a social media post, said Now Telecom had secured a “tri-mega franchise”.
Based on its franchise, Now Telecom would be able to build, operate, and maintain mobile radio systems, such as radio paging systems, cellular phone systems, personal communications networks, and trunked radio systems.
The scope covers all electronic communications services in the Philippines, and between the country and other territories “including outer space as public interest may warrant.”
Kristian Pura, Now’s head of business development, said the company’s franchise is similar to those of the country’s largest telco providers, which means that it can compete with the services they offer.
A company or consortium needs to have a telco franchise to be able to qualify as a potential contender in the upcoming third telco player bid. The franchise should be valid at least until December 31, 2023.
It should also have a net worth of at least P10 billion; must be 60 percent Filipino-owned; and should have no liabilities with the National Telecommunications Commission, based on the draft terms of reference issued by the DICT.
Moreover, the company should not be a related party to any group with at least 40 percent market share in the “mobile and broadband wireless” segments. So far, that definition covers PLDT and Globe.
Now Telecom’s franchise includes a provision for mobile number portability. This is in line with moves by Congress to allow subscribers to keep their mobile numbers for life even if they change their telco providers. The Senate recently approved on third and final reading Senate Bill No. 1636 or the Lifetime Cellphone Number Act. /kga
Source: https://business.inquirer.net/246382/breaking-now-telecom-gets-franchise-extension-2043
Velarde family-led NOW Corp. surged to a new historic high with the value of trades breaching the P1 billion mark for the second consecutive day.
NOW skyrocketed to P15.30 each share Wednesday, up 49.12 percent as investors seemed enthusiastic about the company’s potential to become the country’s third telco player. The stock jumped to as much as P15.38 per share, making it the second biggest gainer for the day.
A total of 142.72 million shares valued at P1.94 billion changed hands.
NOW officially announced last month its intention to vie for the third telco slot being offered by the government in a bid to shake up the PLDT Inc. and Globe Telecom Inc. duopoly.
The company is in talks with both local and foreign groups for a possible partnership to bolster its bid.
Under the guidelines drafted by the Department of Information and Communications Technology, the applicant with the highest committed investment for the first five years will be selected and this commitment should be secured with a performance bond.
Candidates must have at least P400 billion to P500 billion over a period of five years to compete with the industry giants.
Source: http://bilyonaryo.com.ph/2018/02/14/smart-globe-duopoly-killer-now-hits-new-high-heavy-buying-2-straight-days/
The local stock barometer rose to a new high on Monday on selective buying of large-cap stocks after last Friday’s breakout into the 9,000 territory.
Tracking mostly firmer regional markets, the Philippine Stock Exchange index (PSEi) reversed early losses and ended 17.42 points or 0.19 percent higher to close at a new high of 9,058.62. A new intra-day peak of 9,078.37 was also hit.
Following Friday’s breakout from the 9,000 barrier, Papa Securities said in a research note that the next barrier would be at 9,160 while 9,200 would be the next psychological resistance.
“Looking forward, we note that the index is entering overbought territory once again in terms of RSI (relative strength index) —although trading at overbought levels is not an uncommon occurrence for breakouts,” Papa Securities said.
On Monday, the PSEi was perked up by the services counter, which added 2.33 percent, while the financial, holding firm and mining/oil counters also firmed up.
On the other hand, the industrial and property counters slipped.
Total value turnover for the day amounted to P8.87 billion. Foreign investors were net sellers although at a modest level of P86 million.
Despite the PSE’s gain, market breadth was negative. There were 116 decliners that outnumbered 95 advancers while 55 stocks were unchanged.
The PSEi was led higher by telecom stocks PLDT and Globe, which respectively surged by 6.52 percent and 8.76 percent.
Investors also picked up shares of Ayala Corp., which gained 4.13 percent, while SM Prime and BPI both added over 1 percent.
Shares of Megaworld and Security Bank also firmed up.
Outside of the PSEi, notable gainers included Now Corp., which surged by 10.73 percent. Now is among those aspiring to be the third telco player in the country.
On the other hand, ALI, AGI and Jollibee all slipped by over 2 percent while Metrobank and SM Investments lost over 1 percent.
BDO, URC, ICTSI and DMCI also faltered.
Source: https://business.inquirer.net/244991/ph-stocks-notch-another-record-high
Listed technology firm Now Corp. is in talks with local companies on forming a consortium in response to the government’s call for a third telecommunications player.
Details of the partnership are now being finalized, but Now declined to name the other companies.
“Definitely, we will participate … several groups have contacted us to form a consortium,” Now Corp. business development head Kristian Pura told reporters on the sidelines of the preliminary conference and consultation on selecting a third telco Wednesday in Quezon City.
“The consortium will require a foreign partner, kasi hindi naman kaya ng domestic players,” he said.
“That’s the requirement for us to have a foreign partner … So, Philippine consortium to partner with foreign player in order for us to participate, but we will wait for the TOR (terms of reference),” Pura noted.
The Department of Information and Communications Technology (DICT) is coming up with the final terms of reference on February 19.
DICT officer-in-charge Eliseo Rio said Philippine Telegraph & Telephone and Converge ICT Solutions Inc. have conveyed their intention to form their own respective groups.
PT&T earlier said it was in talks with a South Korean telco and was working on a separate partnership with China Telecom, the Chinese government’s choice to enter the Philippines as the third telco player and compete with PLDT Inc. and Globe Telecom Inc.
Converge ICT Solutions Inc. is also interested to make a bid for frequencies from the National Telecommunications Commission.
As of 3:12 p.m., shares of Now Corp. has been trading at P5.26 apiece, up 13.61 percent from P4.63 Tuesday. —VDS, GMA News
Source: http://www.gmanetwork.com/news/money/companies/640908/now-corp-in-talks-with-local-telcos-on-forming-a-consortium/story/http://www.gmanetwork.com/news/money/companies/640908/now-corp-in-talks-with-local-telcos-on-forming-a-consortium/story/
MANILA, Philippines — Shares of telecommunication companies PLDT Inc. and Globe Telecom have been negatively affected by speculations of a third telco player coming in, while share prices of companies that may possibly benefit from the entry of the much-awaited third player have been on the rise.
Shares of Now Telecom, for instance, rallied by 1.81 percent at the close of the 2017 to finish at P2.82 per share from just P2.2 per share last Oct. 25.
Now Telecom of Mel Velarde has expressed interest in joining the government’s planned auction of surrender and recalled spectrum frequencies, the National Telecommunications Commission earlier said.
EasyCall Communications Philippines likewise saw its share price rise by 5.71 percent at the end of 2017 to end at P18.50 per share. Last Sept. 25, this was just at P3.25 per share.
Traders attributed the increase in the share prices of these two companies to the possible partnership with Chinese or foreign telco players that are interested in entering the Philippines following President Duterte’s call for the entry of a third telco player.
Share prices of PLDT, chaired by tycoon Manuel V. Pangilinan and Globe Telecom, on the other hand, have seen significant declines.
Globe, meanwhile, closed 2017 at P1,900, lower than the P2,228 closing price last June 7.
Aside from Chinese telecom players, four other companies from Japan, South Korea, US, and Australia are interested to partner with local firms and become a third telco player in the country, the Department of Information and Communications Technology (DICT) said.
DICT officer-in-charge Eliseo Rio Jr. said in a recent briefing Telstra Corp. Ltd. of Australia is interested in entering the Philippine telco market.
President Duterte has invited Chinese telco companies to invest in the telco industry to break the duopoly and provide more options for consumers.
The DICT and the NTC are planning to conduct the bidding for the available frequencies within the first three months of 2018.
NOW Corp., known for its Fiber Air service, now enters the residential market. This service is unique because of its guaranteed and committed minimum speed already enjoyed by highly demanding enterprise clients.
The Philippine Stock Exchange-listed technology, media and telecom company decided to expand to the residential areas in response to clamor from enterprise users whose families consume enormous bandwidth for their personal, educational, entertainment and other needs.
“One important thing we learned for the past 12 months of operation is that families now require enterprise-grade quality of Internet experience,” said Kristian Pura, head of business development.
The delivery of Fiber Air to homes will help deliver over-the-top products, such as movies and television programs that require minimum throughput, and with NOW’s reliable services, absolutely without data cap.
Apart from its broadband services, NOW is known as an information-technology company delivering software systems and IT-managed services to top banks, such as BDO, Philippine National Bank, the industry’s regulator, the Bangko Sentral ng Pilipinas, as well as other government agencies and branches like the Supreme Court. The company is now implementing the P57-million contract on e-mail and collaboration system of the Supreme Court.
“The strength of our company is our IT competence, which enables us to ensure superior connectivity to highly demanding enterprise customers, who, in turn, want their families to also enjoy the high-quality Internet experience from NOW,” Pura added.
The first residential area that has been activated is Corinthian Village in Quezon City, whose residents may now avail themselves of the high-quality Internet services enjoyed by educational institutions, media companies, hospitals, government agencies and buildings with SMEs and large enterprises as tenants.
Because NOW is using wireless technology, new residential areas would be quickly added into its network. A special feature of this business will allow residents to also make money. NOW partners with home-buddies who would represent the company in their respective buildings and subdivisions. As sales partners, they will earn money through commissions and enjoy free broadband, as well.
With this marketing tactic that harnesses local talent in each area and powered by the easily deployable wireless technology, NOW is confident that it will emerge as the most viable and capable alternative to the telecom duopoly.
NOW counts some of the biggest firms in the country as its broadband clients. Among its recently connected broadband customers include Sogo Hotel Group, which has a chain of hotel establishments in Metro Manila; Marco Polo in Ortigas; WorkHaven, a co-working space located in Linden Suites; Manila Broadcasting Corp. in Pasay City; and STI campus in Bonifacio Global City.
INFORMATION technology firm NOW Corp. is targeting to have 400,000 broadband subscribers in Metro Manila in five years with the expansion of its enterprise-grade wireless internet to residential areas, a company executive said.
Mel Velarde, president and chief executive officer of NOW, told reporters in a news briefing on Tuesday that the company is optimistic it can hit the target in five years with its combined subscribers from the residential sector and small- and medium-sized enterprises.
He said they decided to expand their services to the residential areas in response to demand from users in the enterprise segment for faster internet connectivity and higher bandwidth.
Velarde also said NOW is introducing a new marketing strategy whereby residents can earn money by representing NOW in their respective buildings and subdivisions. Velarde said these channel partners will earn commissions and get free broadband.
Meanwhile, he disclosed that the company is looking to raise P1 billion to support the rollout of its enterprise-grade wireless internet to residential areas.
“We’re in the middle of doing a preferred share offering. We’re raising a billion pesos,” he said.
He said the company is the middle of the application process with the Philippine Stock Exchange and Securities and Exchange Commission. “Hopefully, we get the approval in the next few months,” he added.
Velarde said the P1 billion they are aiming to raise is “good for us to cover the major areas of Metro Manila.”