Globe Telecom Inc. is solidifying its place in the tech industry as it ventures beyond its core telecom business. Its growing investment in digital services, artificial intelligence (AI) and cloud technology could open new ways for business growth and attract more investors.
A key driver behind this plan is NCS Philippines, a joint venture of Globe and NCS, a technology company in Singapore’s Singtel Group. The partnership seeks to deliver high-end technology services to both businesses and government agencies.
The venture combines Globe’s technology arm, Yondu, and the Philippine operations of NCS. The company is 51 percent owned by NCS and 49 percent owned by Globe. The partnership’s enterprise value is estimated at about P1.87 billion.
H.E. Bennett Securities Inc.’s Joel De la Pena said Globe could be worth more as it develops its technology business. He wants the company to be seen as more than just a telecommunications provider, but also a growing technology investment company.
The deal also provides Globe with a path for expansion without having to spend a great deal building a large technology business of its own. Globe’s minority ownership will help it share in future earnings, dividends and potential increases in value of the venture.
NCS Philippines will focus on providing various technology services such as cybersecurity, cloud computing, artificial intelligence, data analytics and automation. These services help companies improve their operations, protect information and leverage modern digital technologies.
It will also offer private 5G networks and other digital solutions to businesses and government agencies. These services can help industries that need reliable connections, secure systems and faster ways to process data.
The increasing use of artificial intelligence in the Philippines also opens up ways for the venture. De la Pena cited data that showed 92 percent of Philippine organizations have adopted some form of AI. However, some 65 percent are still testing the technology through pilot programs.
This means many businesses might need professional support to implement AI into their day-to-day operations. NCS Philippines could help these organizations move from testing digital instruments to deploying them at scale.
Government efforts to improve digital services and technology infrastructure can also increase demand for these solutions.
Globe’s traditional telecom business will still play an important role meanwhile. It is running now and so generates regular income to pay for its investments and dividends.
Globe will combine its telco business with tech ventures to open up more money-making opportunities in the future.
This partnership with NCS could be a key part of this strategy. The Globe could benefit more from the growing technology market as more companies adopt digital solutions.
Frequently Asked Questions
What is NCS Philippines?
NCS Philippines is a joint venture between technology company NCS, a company under Singapore’s Singtel Group and Globe Telecom. It offers digital and technology services to businesses and government agencies.
What technology services will NCS Philippines offer?
The company will offer solutions in artificial intelligence, cybersecurity, cloud computing, data analytics, automation and private 5G networks.
How can the partnership help Globe grow?
The partnership allows Globe to enter the technology business, exploit new business opportunities and share in the proceeds of future income without incurring the full cost of creating the venture.