#telstra san miguel

has announced that it has ceased negotiations with San Miguel Corp. What made Telstra back out of their plans to invest with San Miguel in the country? San Miguel owns a sizable chunk of the 700MHz band which will be used in the mobile data network that SMC is building. Telstra CEO has stated that they are willing to invest up to $1 billion for the joint venture with San Miguel. San Miguel, or Ramon Ang for that matter, might have inflated the investment value of the 700MHz band to reduce the potential share of Telstra. If San Miguel insists that it should be valued at or near the $2.7 billion mark, then the $1 billion of Telstra will be reduced to just 27%. San Miguel surely has other assets and infrastructure on top of that which could balloon to $3.5 to $4 billion in value, further reducing the investment of Telstra to a mere 20%. The other scenario is that San Miguel would have asked Telstra to pony up $2.5 billion for the 40% of the joint venture. Read more in our articles including "Globe calls for distribution of 700 Mhz band after scrapped Telstra-SMC venture" and "What did Telstra and San Miguel not agree on?".