Globe Telecom Acquires 50% Equity Stake in San Miguel Corp’s Telco Assets
Globe Telecom, the Philippines’ premier Telco and the Philippine Long Distance Telephone Company (PLDT) is set to jointly acquire a 700-MHz frequency asset owned by San Miguel Corporation (SMC), the country’s top multinational company.
With an acquisition cost set at Php 69.1 Billion, both telecommunication firms agreed to acquire a 50-percent equity stake in the SMC telco, firming up a duopoly in the telecommunications industry.
By utilizing the 700 MHz frequency property of SMC, the telcos would allow the deployment of a high-capacity LTE based wireless and fixed broadband network to deliver higher data rate and LTE wireless broadband service. With the use of the 700 MHz frequency, the cost of broadband is expected to go down further benefitting consumers.
PLDT Chief Executive Manuel Pangilinan said that, “This will enable existing operators to provide significantly improved Internet and data services to the public and to our customers in the shortest possible time. This transaction offers a breakthrough opportunity, not only for the companies involved but also for the industry and the country.”
As a result, this venture will accelerate the improvement of mobile internet services in the country as the number of cell sites will be increased considerably. Globe will be able to serve its subscribers better in terms of faster mobile data browsing speeds, affordability of services, and increase of capacity in current cell sites.
According to PLDT, unutilized radio frequencies will be returned to the government that in turn will provide opportunities to new players that would want to join the telecommunications industry in the country.