Team DailyPedia
Amid the growing calls for better Internet services in the country, telecommunications giants Philippine Long Distance Telecommunications (PLDT) and Globe Telecom will jointly purchase the telecommunications assets of San Miguel Corporation (SMC).
The landmark deal among the telcos aims to bring faster internet speeds to mobile phone users in the coming months.
SMC sold its telco assets to PLDT and Globe for about P70 billion on Monday, May 30.
During a briefing in Makati City, PLDT chairman Manuel V. Pangilinan told the media: “SMC wanted to divest from telco business while we were keen on acquiring it. It was just mutual. Plan is to divest our entire stake in Beacon, we’re talking to certain private equity funds for remaining 25%.”
The acquisition deal, which will give the two telco giants access to more radio frequencies particularly the 700MHz, comes after the collapse of talks between SMC and Australian telecom Telstra Corporation last March. A return of certain frequencies to the government, which is also part of the deal, will also allow a third competitor to join the market.
SMC believes that the deal will be most beneficial for consumers since PLDT and Globe would be able to maximize the assets much faster.
In a statement, SMC President and COO Ramon Ang said: “This is a sacrifice we have to make to finally unlock the full potential of our high-quality, mobile broadband spectrum faster and allow consumers access to its benefits through the combined resources, network and expertise of the two carriers.”
PLDT, which would increase its capital expenditure by $100 million in 2016 and 2017, will invest in the 700-MHz spectrum frequency by building more cell sites in rural areas. This particular frequency has wider coverage, reaches indoor areas better, and is more cost-efficient to operate.
