TELECOMMUNICATIONS and digital services provider Globe Telecom (Globe) is considering eventually dissolving the recently acquired Bayan Telecommunications (Bayan) once it is fully integrated into Globe.
Globe president and chief executive officer Ernest Cu explained to reporters in ambush interview Friday evening that Bayan, which Globe acquired via a debt-to-equity deal from Lopez Holdings Corp. (LPZ), will be fully integrated into Globe.
“For now, yes [we are keeping Bayan],” Cu replied when asked if Globe intended to keep Bayan.
Cu said that for the time being, the newly acquired telecommunications unit will still be branded as Bayan but Globe is open to the idea of fully dissolving the brand.
“Right now we do not know yet [if we are dissolving or keeping the brand]because Globe is a stronger brand than Bayan but we’ll see. We’ll make an announcement as soon as we make a decision,” Cu said.
Cu said that Globe and Bayan now operates as one single unit that shares the same billing systems, the same network and the same team of people.
He said that Globe’s P800-million capital expenditure (capex) in 2016 includes spending for Bayan.
“The network is integrated. The billing systems are already integrated. We operate as one already and so the modernization of their network is hand in hand with Globe,” Cu said.
Existing subscribers of Bayan, which provides digital communications, will experience an upgrade in service towards the end of 2016.
Higher internet speeds of up to 250 Mbps and stable service are among the changes Globe promises.
“[Among the improvements are] available high speeds in broadband . . . better stability in the service and added new offers they could take advantage of,” Cu said.
“Our objective is to offer everybody as high as 250 Mbps,” he added.
In July, Globe acquired a majority stake in Bayan which was in corporate rehab through a P1.83 billion debt-to-equity deal that boosted Globe’s 57 percent share in Bayan, which it had acquired in 2013, to 98 percent.
Ayala-led Globe was able to bring Bayan out of corporate rehab, which was originally targeted to be completed by 2023.