Paging firm turned business solutions provider Easycall Communications Philippines Inc. has secured the Securities and Exchange Commission’s go-signal to undertake an P11.5-million rights offering.
Based on its prospectus filed with the SEC, Easycall is offering a total of 11.5 million common shares at P1 per share. Proceeds will be used to improve and expand its Internet-based services.
Easycall said it needs to invest in new and innovative technologies to enhance the delivery of its current Internet-based service to stay alive inthe highly competitive industry, now dominated by the largetelecommunications companies such as Philippine Long Distance Telephone Co., Globe, Bayan and Eastern Telecommunications.
In the past three years, small and medium-sized Internet Service providers have (ISP) either closed shop or have consolidated their business and infrastructure with the larger telecommunications companies.
One of Easycall’s products, the dial-up access, is now losing popularity as larger companies offer a faster connectivity option at the same cost. “The high turnover of new technology remains as a challenge to the company as technology maximization is part of its current thrust,” Easycall said.
Easycall said it intends to maintain its modest customer base and offer value-added products and services such as VOIP and web development services.
Other proceeds from the rights issue will be used to support operational requirements of its wholly-owned subsidiary EESI to better service existing clientele.
Shareholders of Easycall include Global E-Business Solutions Inc. (90.15 percent) and Palos Verdes Land Corp. (5.49 percent).