The Philippines’ second largest operator Globe Telecom plans to invest $200 million to $300 million over the next two years to upgrade Bayantel’s network, after spending $172 million to acquire the company.

Bayantel chairman Gil Genio (pictured below) said Globe will give the company “financial and technical support” in return for the use of its 1.8MHz spectrum to keep up with rising data demand, BusinessWorld reported.

Genio, who is also Globe’s COO, said that the new investment is just for the “modernisation of the network — the outdoor cabinets, data nodes, etc”.

The National Telecommunications Commission (NTC) gave Globe approval in July to take a controlling interest in Bayantel, which had been under corporate rehabilitation since 2003.

After acquiring a 38 per cent stake in 2013, Globe proposed converting its Bayantel debt holdings into at least a 54 per cent stake. But the debt-to-equity proposal was opposed by market leader PLDT, which urged the NTC to reject the deal, arguing a merger would “defeat competition”.

After the NTC approved the deal, Globe reached an agreement with Bayantel and Lopez Holdings in July for their entire equity holdings. The purchase of 70.76 million shares boosted Globe’s control to 98.57 per cent.

Bayantel had planned to exit rehabilitation in 2023 but was able to exit after Globe took over.