Lopez-led Bayan ties up with Indonesian firm

MANILA, Philippines - Lopez-led Bayan Telecommunications Inc. (Bayan) has tied up with a unit of state-owned PT Telecomunikasi Indonesia TbK (Telkom) to provide Internet connectivity services overseas.

Patrick Gatchalian, head of Bayan Business, said in a statement that the company entered into a master services agreement with Telkom’s PT Telekomunikasi Indonesia International (Telin) to serve overseas customers where Telin has presence.

“Through the partnership, we can provide fast connectivity to Indonesia and other areas where Telin is present such as in Singapore, Hong Kong, Timor Leste and Australia. We are targeting customers that run mission critical applications and are dependent on low latency,” he stressed.

He added that other partnership opportunities include the establishment of bilateral capacity between Bayan and Telin.

“Benefits include network efficiency and scalability, faster provisioning of data services, availability of capacity, and flexibility in pricing,” Gatchalian said.

Telin marketing and sales director S.P. Natigor Sitorus said the Indonesian company could outsource its customers’ domestic data requirement in the Philippines.

“Bayan is Telin’s first partner for outsourced data in the Philippines,” Sitorus added.

The Master Services Agreement (MSA) was sealed by Gatchalian and Sitorus at the CommunicAsia 2013/BroadcastAsia 2013 held recently in Marina Bay Sands, Singapore.

Jacqui Co-Soriano, head of Bayan Business Managed Services, Carriers & Partners, also signed the agreement. The signing was also witnessed by Telkom operational vice president public relation Arif Prabowo.

PT Telkom offers a broad range of network and telecom services including domestic and international basic services, using cable, fixed wireless (CDMA), Global System for Mobile Communication (GSM) as well as interconnection services used among other license operators (OLO).

Ayala-led Globe Telecom Inc. is set to take over Bayan this year through a debt-to-equity transaction that would initially give the telecom provider an initial 57 percent stake in the cash-strapped company.

Globe would initially convert about 40 percent of its $130 million debt acquired last December into equity after which another 29 percent would be converted after Bayan completes its increased in authorized capital stock.

Bayan would have to undertake a capital restructuring to accommodate the issuance of additional shares to Globe.