Transpacific Broadband Group International, Inc. (“TBGI” or “the Company”) is a telecommunications company which currently generates its revenues through subscriptions from mainly schools, corporations, and government agencies of: 2
- data transmission services, and
- video uplink services.
TBGI holds a 25-year Congressional Telecom Franchise for commercial telecommunications operations under RA 8657 on June 22, 1998 and an approved Provisional Authority to transmit radio signals to satellites granted by National Telecommunication (NTC) on April 7, 1999.
The Company’s data and video services are delivered from TBGI Earth Station in Clark, Pampanga transmitted via Apstar-6 satellite to its clients.
TBGI’s data services is illustrated below:
TBGI provides internet access to educational institutional clients in remote areas where landlines were not available.
Video uplink service is illustrated below:
TV uplink service local Channels 4, 9, and 13, and international cable television program providers including an Egyptian channel and a Korea-based TV shopping network.
TBGI’s C-band satellite signal is the Company’s competitive edge since it is not affected by weather conditions compared to the Ku-band satellite that is being used by its competitors.2
The Company owns 30% of ATN Philippines Solar Energy Group Inc., (ATN Solar), subsidiary of ATN Holdings, Inc. (ATN). ATN Solar is engaged in the operation and construction of solar power projects.
On March 14, 2017, ATN Solar issued P325 million shares to its related parties, P6 million shares to Unipage Management, Inc. (UMI), that resulted to the dilution of TBGI’s equity interest in ATN from 30% to 29.93%.
TBGI’s top stockholders as of December 31, 2017 are the following:7
TBGI’s Directors and Executive Officers and the relevant experiences of each are listed below.8,9
Palladian Land Development Inc. (PLDI), a developer and major owner of Summit One Tower, is a subsidiary of ATN Holdings Inc.
As an IT company, TBGI is vulnerable to major risk of obsolescence. Given this, TBGI focuses on application and software development instead of capital investing to retain its financial resiliency. Also, TBGI is contracted to only one supplier since its bandwidth requirement is not significant compared to the total available bandwidth supply. The Company does not consider this as a risk as there are many suppliers of satellite bandwidth.10
Aside from its plans of consistent internal revenue generation, TBGI’s market development and business expansion include:11
- To be competitive overseas to other Asian countries, particularly China, Cambodia, and India via country-specific partners
- Focus on its existing principal activities with no plans to engage in major product research
- Setting up of 30 MW Solar PV Power Plant near Metro Manila, with projected revenue of P540 million per year12, through its affilitiate, ATN.
Further, ESi Acquisition Inc. of Georgia, USA appointed TBGI as exclusive distributor of WebEOC, a software used in the USA for counter-terrorism and disaster management applications.13
1 PSE Edge, TBGI Company Disclosures, Sec 17-1 (2015 & 2016) and Sec 17-2 (1st-3rd Qs of 2017), https://goo.gl/LWAQHG
2 TBGI SEC 17-1, December 31, 2016 Annual Report, Business of Company, p.4, https://goo.gl/mSb2p2
3 TBGI SEC 17-1, December 31, 2016 Annual Report, Notes to Financial Statements, Note 22 Service Income, p.31, https://goo.gl/mSb2p2
4 ATN SEC 17-1, March 31, 2017 Annual Report, Certain Relationship and Related Transaction, p.16, https://goo.gl/WSWakJ
5 [Amend 2] Amendments to Articles of Incorporation, http://goo.gl/TxWnPW
6 [Amend 2] Declaration of Stock Dividends, http://goo.gl/oJc1Rx
7 TBGI’s List of Top 100 Shareholders as of December 31, 2017, https://goo.gl/7mn7i3
8 TBGI SEC 17-1, December 31, 2016 Annual Report, Control and Compensation Information, p.12-14, https://goo.gl/mSb2p2
9 TBGI Public Ownership Report, January 5, 2018, https://goo.gl/Anh6rY
10 TBGI SEC 17-1, December 31, 2016 Annual Report, Management Discussion and Analysis or Plan of Operation, p.6, https://goo.gl/mSb2p2
11 TBGI SEC 17-1, December 31, 2016 Annual Report, Management Discussion and Analysis or Plan of Operation, p.7, https://goo.gl/mSb2p2
12 ATN SEC 17-1, March 31, 2017 Annual Report, Part 1, Notes to Financial Statements, Note 14 Investments in Associates, p.26, https://goo.gl/WSWakJ
13 TBGI SEC 17-1, December 31, 2016 Annual Report, Management Discussion and Analysis or Plan of Operation, p.7, https://goo.gl/mSb2p2