Globe Telecom Inc. said it expects the broadband speed of Bayan Telecommunications Inc. to further improve next year, after they completed the integration of their networks.
“We don’t separate them out anywhere because the network’s integrated. The billing systems are integrated. The people are already in Globe. We operate as one already. The modernization of their network is hand-in-hand with additional expansion that Globe is doing. Together, that is one project,” Globe president and chief executive Ernest Cu said.
Cu said Globe’s objective was to offer Bayan subscribers a broadband speed of up to 100 megabits per second.
Globe chief commercial officer Alberto de Larrazabal earlier said the company planned to spend between $200 million and $300 million over the next two years to modernize its fixed-line infrastructure, including that of Bayan.
De Larrazabal said the first phase of the modernization of Bayan’s fixed-line infrastructure would be in Quezon City, Manila, Cebu and Davao.
Bayan’s broadband and fixed-line voice subscribers last year stood at 144,100 and 174,400, respectively.
Globe owns 98.57 percent of the outstanding capital of Bayan, after it acquired the remaining stake of the Lopez family in the telecom company for P1.83 billion.
Globe acquired 98.26 percent of Bayan’s loans and 100 percent of Radio Communications of the Philippines Inc.’s liabilities. RCPI, a unit of Bayan, is owned by the Lopez Group.
The acquisition cost of $130 million was lower than the $400-million face value of Bayan.