Bayan Tel Quits Wireless Business

Opting to bow out of the cellular phone battlefield and focus on its wired business instead, Bayan Telecommunications Inc. (Bayan) sold off its wireless CDMA (Code Division Multiple Access) business to Multi-Media Telephony, Inc. (MTI). The sale will have a positive impact on Bayan’s financial standing and allow the company to focus its resources on sustaining the growth of its wired business, particularly Digital Subscriber Lines (DSL), Corporate Data and Carrier Data, explained Bayan COO Rafael T. Aguado. Due to the private nature of the transaction, amount was not disclosed. It was also a strategic decision on the part of Bayan to exit the CDMA business while readying itself for sustainable growth in other technologies, Aguado said. The deal between Bayan and MTI involves the sale, assignment and transfer of all Bayan’s rights and interests used in its WLL service from, licenses, permits, and other authorities. Under the terms of the sale, selected assets related to Bayan’s wireless CDMA business will be transferred to MTI, a duly enfranchised wireless voice and broadband company, as part of its plan to expand its wireless voice and data service offering. Already, the National Telecommunications Commission (NTC) approved the transfer of Bayan’s Local Exchange Carrier (LEC) service to MTI “including any and all rights, and interests and participants, as well as all liabilities and obligations of Bayan in connection with or in relation to, otherwise arising from the WLL (wireless local loop) service and to install, construct, maintain and operate the same.” MTI of Jose Perez de Venecia does business as Broadband Philippines, a company originally engaged in paging network and call center operations in 1993 until it acquired a nationwide broadband license from the National Telecommunications Commission (NTC). MTI sold its paging business to Easycall in 1999 and exited from its call center business in 2000 to concentrate on offering local exchange carrier, cellular mobile telephone, and broadband services nationwide. A few years ago, in 2009, Bayan and MTI forged a co-branding agreement, sharing facilities and revenues. Bayan used MTI’s base stations and frequencies to expand the coverage of its wireless landline loop and increase its subscriber base.