MANILA, Philippines — Listed telecommunications, media and technology company NOW Corp. has entered into an agreement with the National Transmission Corp. (TransCo) for the use of the latter’s fiber and microwave assets for the rollout of its fixed broadband network.
In a statement, NOW Corp. said it signed a memorandum of understanding (MOU) with TransCo and affiliate NOW Telecom Co. Inc. for the potential use of existing fiber and microwave assets nationwide, as well as access in certain fiber-optic cores, vacant lots, tower spaces, and related facilities being operated on by National Grid Corp. of the Philippines (NGCP) and owned by TransCo.
The assets would be used to build a nationwide fixed broadband network.
“NOW is determined to build an independent nationwide backbone to cover the entire country and we are seriously looking on the viability of collaborating with TransCo to achieve this end. We now have a government committed to exhaust all means to solve the digital divide,” NOW Corp. chairman Thomas Aquino said.
With the MOU, NOW Corp. president and chief executive officer Mel Velarde said the company would be able to take an active role “in the unfolding of the full transformation of the digital Filipino, in scale and in scope, the country has not seen before.”
Last February, President Duterte signed into law the renewal of the franchise of NOW Telecom for another 25 years or until 2043.
Under the law, NOW Telecom is allowed to provide telco services such as wired, wireless, fixed, cellular and mobile.
In 2016, the company rolled out its pre-5G technologies to deliver broadband and wireless cable and TV connectivity to enterprises such as hotels, schools, business process outsourcing firms, hospitals, commercial, and residential buildings.
The company is among those interested in the third telco spot in the country.
Given the clamor for better telco services, Duterte earlier wanted a new telco player to be operational and compete with existing players PLDT Inc. and Globe Telecom Inc. within the first quarter.
The government has yet to finalize the terms of reference for the selection process of a third telco player as there are issues which still need to be resolved.