Velarde welcomes NOW shares price ceiling

NOW Group of Companies founder and CEO Mel Velarde welcomed the price ceiling of NOW shares today, September 21, following the announcement that NOW Telecom Company Inc., secured a permit from the government to operate as the country’s fourth major mobile phone operator. 

NOW shares gained 1.19 points or 49.79%, soared to 3.58 compared to last price of 2.39.

“We are moving forward with the corporate restructuring of NOW Telecom to take it to the next level. NOW Corp. and NOW Telecom were the first to introduce 5G broadband speed of up to 2 Gbps [gigabits per second] direct to our existing enterprise clients,” Velarde added. 

The National Telecommunication Commission on Sept. 14 issued a provisional authority allowing NOW Telecom to install, operate and maintain a nationwide mobile telecommunications system.

The authority is not specific to 3G or third-generation mobile communications technology but can extend to other technologies such as 4G, 5G or even outer space.

The PA is subject to a number of conditions, including the infusion of an additional capital of at least P1.9 billion from the first two years, capital expenditure of P6.3 billion in the submitted rollout plan and approval by the Securities and Exchange Commission of the increase in authorized and paid-up capital.

It also requires NOW Telecom to accelerate the installation of broadband data service in the suburban and rural areas. In each phase of project implementation, NOW Telecom is required to comply with the 70:30 ratio of urban to suburban and rural network rollout coverage.

The NTC order prohibits NOW Telecom from sharing or co-using its frequency to other players such as PLDT/Smart, Globe Telecom, DITO Telecommunity Corp. or any other entity without first securing approval from the commission.

Smart, Globe, Dito and NOW Telecom are the only four cellular mobile telephone service licensees in the Philippines.

Source: Peso Economics