A satellite dish for every school

Transpacific Broadcasting Group International Inc. has chosen the less traveled road. It offers access to the worldwide web through satellite rather than through the more popular cable connection. Its markets are also the underserved sectors of education and health.

"An internet connection without cables is very promising, especially in remote locations that have not been reached by telephones," said TBGI president Arsenio Ng.

Located at the Clark Special Economic Zone in Pampanga, TBGI’s earth station provides internet access through the subscriber’s satellite dish. "Each satellite dish that we sell can connect to about 60 computers," he said. .

The installation costs of each dish is P350,000, payable within three years or about P10,000 a month. Including service charges, the monthly payment is P35,000 per month.

Profitable

A subsidiary of ATN Holdings Inc, TBGI started out in 1995 initially as a video satellite uplink, providing channels that were unavailable to remote locations in the country.

"Those were difficult years for the company. We needed to reach a critical mass of five channels for the company to become profitable," he said. TBGI reached its goal five years later, significantly reducing corporate net losses by 74% to P2.72 million from a deficit of P10.58 million in 1999.

TBGI began providing internet connection through satellite only in 2001. That year, it finally got out of the red, posting a net profit of P13.64 million. The following year was even better year financially, with net profits shooting up to P18.81 million.

Markets

Targeting schools and hospitals make business sense," said Ng, who, over and above the potentially huge market of students and healthcare patients in the country, is attracted by the impact of internet on these sectors.

"Digital commerce is the future. By providing our students with educational tools such as the internet, we are helping government cut down on some of the problems such as unemployment," he said. "In the case of hospitals, the efficiency rate can be increased by providing intranet. Everybody who has been hospitalized knows how tedious it is to check out. Intranet can make this process, including the dispensing of medicines and the consultation schedules of doctors and where they can be reached, more organized."

Going public

This June, TBGI will push through with its initial pubic offering equivalent to 30% of the companyís stock.

"This may not be a very good time for us because, in a good economic condition, we would be raising about five times what the underwriters are looking at right now. But this is an excellent time for the investors. At this time of global apprehension, investors are more objective and they will only pay for value."

TBGI’s shares are expected to sell at between P1.18 and P.48 per share. Proceeds of between P90 million and P105 million will help the company reach its target to service an additional 100 schools and 10 hospitals by the end of the year.