In Mar 2016, the country collectively weeped when it was announced that the joint venture of San Miguel Corporation and Telstra was not pushing through after all — despite the Australian telecommunications company having reportedly invested USD1-billion for a wireless venture that promised cheaper and faster internet service in the Philippines.
Well it looks like PLDT and Globe Telecom are moving in where Telstra took off.
In an announcement today, May 30, that was streamed live on Facebook, PLDT honcho Manny V. Pangilinan announced that his company has acquired half of San Miguel’s Telecommunication Business.
Competitor Globe Telecom has acquired the other 50% share of the business, “in a deal expected to cement their duopolistic hold on the local market amid the growing clamor for better Internet services,” reports Philippine Daily Inquirer.
PLDT’s acquisition will be funded by the partial sale of its interest in Meralco held through Beacon Electric. It gives the company access to additional frequencies including 700MHz. In addition, PLDT will also receive supplementary frequencies in the 900MHz and 1800MHz bands.
More information from @LiveSmart’s tweets:
– Acquisition involves a return of certain radio frequencies to the Government, which will allow 3rd competitor to enter the market. This move will help improve Internet speed, quality, and coverage — nationwide.
– This acquisition will provide benefits to PLDT, Smart, TNT and Sun customers, further improve Internet and data services for the public.
– Customers will progressively experience faster internet, higher call and data quality across the fixed and mobile networks of PLDT and Smart. Capacity and coverage — both indoor and outdoor, will be expanded and enhanced.
– Additional supplementary frequencies will enhance our current networks and increase capacity, resulting in faster and improved data services.
– This transaction offers a breakthrough opportunity, not only for the companies involved but also for the industry and the country.
What power does this 700MHz frequency have? Inquirer explains it thus.
– It’s a type of low-band frequency noted for its ability to cover wide spaces and penetrate walls at lower costs.
– SMC owns almost all of the 700 MHz spectrum (694 MHz to 790 MHz), previously assigned for analog television broadcasting before it was shifted for telecommunications use as TV migrated to digital.
– SMC would have used this to carpet the country with a “better and cheaper” mobile Internet service.
“So coveted was the asset that both PLDT and Globe last year launched a full-scale public relations campaign urging the government to give them their fair share of the 700MHz. When that did not work, both telcos in recent months floated the possibility of partnering with SMC,” according to Inquirer.
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