Grace Mirandilla-Santos | November 23, 2012
Buyouts and the battle for spectrum in PH
In this wireless world, Globe Telecom is taking a great leap of faith with its recent announcement that it plans to invest in fixed line provider, Bayan Telecommunications Inc.’s (Bayan). The Ayala-led telco is seeking to buy almost 100 percent of Bayan’s outstanding debts worth $200 million for $184 million in cash. If the deal is consummated, Globe would become one of Bayan’s major creditors. Whether this takeover will happen or not, the country should know before December 18, the deadline for the offer.
In separate talks, Globe is also negotiating to purchase an equity stake in the same telco. Some analysts say this move is definitely an indication that Globe, the second largest telco in the Philippines, is feeling the heat of intense competition in the mobile market.
So, why invest in the struggling Lopez-owned telco? Apart from Bayan’s 200,000 or so landlines, it has 140,000 broadband subscribers and unused frequency. Ah, the magic word: frequency. It is such a precious, finite resource that is causing a lot of madness in the telecoms world, especially in this broadband and smartphone era.