According to Innove chief operating officer Gil Genio, the amount will be used to increase the capacity of its switches, purchase submarine cables, expand its geographic footprint, and invest in new network technologies.
Innove is the newest company emerging from the consolidation of Isla Communications Inc. and Globe Telecom’s wireline and data businesses. A 100-percent subsidiary of Globe, the company starts operation next month with more than P24 billion in assets, P8 billion in annual revenues, P2 billion in operating income and zero debt.
"We have created a financial strong wireline company in Innove," Genio said. "It will house all non-GSM (global system for mobile communications) telecom requirements, serving clients for voice, private data networks and Internet needs."
Effective Oct. 1, 2003, Innove, which is expected to have a work force of 800, will also absorb about 500 Globelines employees who will carry over their current seniority and maintain current salary levels.
"Innove will offer Globelines and Globequest with the same standards enjoyed by our customers, but now delivered over a wider and constantly expanding domestic and international network infrastructure and with a stronger, more dedicated organization," Genio explained.
Innove’s independence from Globe Telecom (which will now focus solely on the wireless segment of the business) will benefit customers greatly, he pointed out.
"We will be more flexible, with the ability to integrate voice and data. We can set up our own subsidiaries, forge partnerships and acquire related business," he said.
Genio added: "We have a unique financial point. And while Innove is small compared to Globe Telecom, its assets will make it land among the country’s top 50 corporations. – Mary Ann Reyes