Metro Manila (CNN Philippines, October 3) — Velarde-led NOW Corp. plans to spend ₱7.8 billion in capital expenditures over the next 10 years to bolster its presence in the 5G space, with the group now moving to acquire “substantial” ownership in News and Entertainment Network Corp. (Newsnet) for its needed spectrum.
The company’s board of directors approved the plan to begin talks with affiliate Newsnet on Monday, a vital deal that would allow NOW Corp. to tap its spectrum to further develop its 5G network.
Mel Velarde, NOW Group chairman, said the company hopes to secure a minimum 20% stake in Newsnet, and increase this “over time.”
The top official said the transaction, which can be settled through share swap, direct cash investments or preferred shares, may be completed “before the end of the year.”
Complementing this move, NOW Corp. is set to initially shell out ₱1.2 billion in 2023 to finance the rollout of its digital infrastructure, which covers both physical and non-physical networks for data delivery.
The investment will also fund the upgrade of its 5G-capable 50 base stations in Metro Manila and Calabarzon. The company is also eyeing the construction of 100 more base stations across Mega Manila.
