Saturday, September 22, 2018
Close  
  • share this

NOW Corp. eyeing slice of residential broadband clientele

/ 07:31 AM November 08, 2017

NOW Corp. is entering the massive residential broadband business as it hopes to capture a small but loyal slice of a market being aggressively pursued by industry giants PLDT Inc. and Globe Telecom.

ADVERTISEMENT

NOW president and CEO Mel Velarde told reporters in a briefing Tuesday that the company would utilize its fiber air service, which it had successfully rolled out for businesses such as banks, schools, hospitals and hotels.

The next step is homes and Velarde said there was a market for NOW’s guaranteed broadband rates.

“Families want enterprise-grade service,” he said, referring to the type of internet quality typically demanded by businesses.

Using its fiber air technology, NOW hopes to go around regulatory bottlenecks experienced by the telcos in laying down fiber cables for their broadband connections. Moreover, it can pursue a modular approach to expansion, helping mitigate upfront capital spending.

NOW has so far launched its broadband service in Corinthian Gardens, an upscale neighborhood in Quezon City.

“This is wireless. We will be able to cover Metro Manila easily through partners,” Velarde said.

With partners, NOW’s home broadband could be available across the capital district within 12 months, he said. He is also targeting to expand in Davao and Cebu City by next year.

NOW’s partners will help the company penetrate certain areas and, in exchange, receive a commission.

For Metro Manila, Velarde is targeting a relatively small market of 400,000 homes and small businesses in five years. Their current 100 fiber air hubs will increase to over 450.

ADVERTISEMENT

Funding will come from a P1 billion preferred share sale, which has convertible features, which Velarde hopes to close by the first quarter of 2018.

Broadband so far accounts for 20 percent of NOW’s revenues, most of which come from its IT services arm. NOW’s IT customers include the Philippine National Bank, the Supreme Court and the Bangko Sentral ng Pilipinas.

Velarde said they hope to increase broadband to 50 percent of revenues and then 80 percent in two years. /cbb

Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: broadband, Business, fiber air service, Globe telecom, IT, Mel Velarde, now corp., PLDT
For feedback, complaints, or inquiries, contact us.
newsinfo

Vatican announces historic deal on bishops with China

September 23, 2018 06:31 AM

lifestyle

Maybe, to Enrile’s mind, Edsa never happened

September 23, 2018 05:52 AM

lifestyle

It must be the weather

September 23, 2018 05:49 AM



© Copyright 1997-2018 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.