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Globe, PLDT buying out San Miguel assets worth $1 billion

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San Miguel Corporation (SMC) is selling its telecommunications assets to PLDT and Globe in a deal that’s worth more than $1 billion (Php46 billion). The deal is said to be under negotiations after talks between San Miguel and Telstra for a joint venture broke down last March.

The sale should include the much-coveted 700MHz spectrum that PLDT and Globe have been angling about and lobbying with the NTC for years. That, plus additional physical assets that include the towers and related properties.

Both Globe and PLDT will be sharing most of the available spectrum (694MHz to 790MHz) in order to expand their mobile internet service.

The exit is unexpected considering that San Miguel has been rolling out its network nationwide and building new cell sites. There could be resistance and it’s still not confirmed if NTC will allow this sale under the new Philippine Competition Law.

Realme Philippines

San Miguel was poised to launch it own mobile and wireless service this year with an initial plan to close a joint venture with Telstra as early as August 2015. Telstra eventually dropped its plans to invest in SMC later on without any clear explanations (read our speculations here) but the latter was confident it can roll out its service even without Telstra in the picture. Earlier this month another telecoms company, Telenor, made know its intention to partner with San Miguel (see story here).

Update: Globe is holding a press briefing this noon to discuss about this development and answer questions from the media.

Update 2: Globe, PLDT acquisition of SMC: Questions answered!

(source)

Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech. You Can follow him on Twitter @abeolandres.

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Unknown
Unknown
5 years ago

I used to be a telstra employee. It was distributed in our internal message that the deal with SMC was dropped due to the fact that Globe telecom will sue telstra if they continue the deal as globe telecom has the only right to use the said spectrum in the philippines.

Jose
Jose
5 years ago

The unused 700mhz of San Miguel should be returned to the government for non use. The government should then auction the frequency to the highest bidder or a third telco. Why should San Miguel earn and the duopoly benefit from the non use of an allocated frequency.

IANVARIVS
IANVARIVS
5 years ago

Band 28!

Janelle B
Janelle B
5 years ago

Mabuti naman at bibilis na internet! Kaya naman pala! ???????????? i really cant wait! Hayy.

blue
blue
5 years ago

Sharing this article regarding the 700-Mhz spectrum and why it will really improve coverage of telcos.
https://www.amaysim.com.au/mobile-plans/4g/700mhz

M
M
5 years ago

wow… edi sila padin… GLOBE at PLDT padin… hanggat walang ibang players sa market… wala na tayong maaasahan sa kanila -_-

how i wish the GOVERNMENT would PARTNER UP with international ISP to bring down prices of services as well as they cost… then they can use the infrastructure of MERALCO para mas mabilis mailatag ang mga cables =)

Jas Concepcion
Jas Concepcion
5 years ago

Competition Law does not apply since SMC does not have any subscribers yet.

Easy E
Easy E
Reply to  Jas Concepcion
5 years ago

Eastern Telecom is currently operating.

Jas Concepcion
Jas Concepcion
5 years ago

“Both Globe and PLDT will be sharing most of the available spectrum (694MHz to 790MHz) in order to expand their mobile internet service.”

This brings in good news for better internet. Come to think of it, wala pa naman mobile/internet asset talaga ang SMC bakit di nalang paghatian ng PLDT at Globe ang frequency for more highways.

wtf
wtf
5 years ago

duopoly showing its strength…the loser will be the Filipino people who will continue pay for the expensive, limited and unreliable internet service…tapos gusto pa natin makalaban sa singapore in terms of technological advancement…walang pagbabago…

keno
keno
5 years ago

Abe, Kindly correct the “Anti-competition Law.” It should be Competition Law. Check the Philippine Competition Commission for more info. Thanks. ????????

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