LISTED tech company Now Corp. has secured a $50-million financing package from a local bank to fund its fiber-cable network rollout plan through 2021.
Mel Velarde, the company’s president, said over dinner on Friday his company would be spending close to $50 million to implement its five-year network-buildup program in Metro Manila.
When asked, Velarde said he could not name the local bank due to a nondisclosure agreement.
“We signed the financing package with a local investment bank. We will spend the money—worth $30 million to $50 million—over five years to build our network, both fiber through the air and fiber through the ground,” he said in a roundtable interview.
While the financing package was signed last month, the money will come in by July.
“The network buildup is part of our five-year plan that will allow us to hit our target gross revenue of $346 million and net income of $120 million,” Velarde said.
Now Corp. ended 2015 on a positive note for the first time with P5 million in net income, thanks to positive sales amounting to P114 million.
Velarde noted this is the first tranche of the tech-cum-telco firm’s expansion program.
“We will go nationwide, but we don’t want to raise money for nationwide buildup, because once we are able to build Metro Manila, the revenues from that can build the network for other cities,” he said. “These are Cebu, Davao, Dagupan, Baguio, Bacolod and Clark.”
He added that the expansion to key cities may start by the third year of the operations of the Metro Manila backbone, or by 2019.
“We think there’s room by the third year. We are targeting the next wave cities, in particular,” Velarde said.
During the same meeting, Velarde added that his company just launched a new product that provides customers with cyber-security requirements bundled with Internet connection and collaboration tech services.
Tagged as the build-operate-transfer service for cyber security bundled with connectivity and collaboration technological services, the product addresses three security factors that prevent cyberattacks, such as the recent hacking of voters’ data.
The product provides enterprises with a private communications network, which is independent of public telecommunications network.
It also gives customers an integrated cyber-security plan that includes a five-year buildup and maintenance program.
Last, it provides customers a collaboration software system, which is a highly secure internal and external collaboration tool commonly used by large banking conglomerates.
“Increased connectivity makes a company vulnerable, and we would like to address that with this product. We will be able to provide customers with connectivity while ensuring data security, integrity and the protection of their networks, web sites and database,” Velarde said.
Formerly known as Information Capital Technology Ventures Inc., Now Corp. is engaged in the business of telecommunications, media and technology.
Clients include Towers Watson, UCPB, Coca-Cola, SC Johnson, International Shared Services, Roxas Holdings, BDO, Chinabank, Philippine National Bank, Development Bank of the Philippines, Golden Arches Development Corp. (McDonalds), Phinma Group of Cos., SM Retail, Angelicum College, Times Plaza and Metropolitan Medical Center, among others.
Now Corp. has a strategic partnership with a cable TV provider in Metro Manila, which shall deliver broadband and cable TV services. It is also a telecommunications, media and technology company of diversified services. The company has growing international presence in countries such as Japan, the US and the UK.