The biggest IT story of the day is PLDT’s acquisition of Digitel which operates Sun Celluar, the 3rd largest telco player in the Philippines.
PLDT, which owns Smart Comm., becomes a much bigger operator and strengthening it’s number 1 spot in the country.
The Philippine Long Distance Telephone company announced today its acquisition of Digital Telecommunications Philippines, Inc. (Digitel) from JG Summit amounting to Php74.1 billion or 51.55% shares in exchange of new PLDT assets worth 2,500 per share. Digitel, which owns Sun Cellular, announced that under the new leadership the paired networks will continue to the expansion of broadband rollout and other next generation technologies in both fixed and wired services. {source: PhilStar}
PLDT says Sun Cellular will remain a separate entity and retain the brand. Smart already surpassed 45 million subscribers in 2010 while Sun Cellular, which has over 16 million subs, was already inching closer to Globe Telecom (26.5 million).
Smart’s rapid growth and expansion requires more wider frequency and that might have prompted the Sun Cellular buy-out. At the same time, Sun Cellular has become a large player in terms of post-paid subscribers (even the first one to reach 1 million). Meanwhile, Smart has only around 500k postpaid subscribers while Globe has around 900k.
From having 3 large celco players, we now have just 2 — Smart at far #1 and Globe at a minority #2.
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Tingin ko hindi mawawala yung mga unlimited offering ng sun kasi meron na yun sariling market. Anyway part of the earnings ng sun will go to PLDT kaya why would they destroy their own market.
Hmmm Tama nga yung na-foresee ng Sun dati nung nag start sila mag-operate…darating ang araw na mag u-unlimited na din ang Globe and Smart…pero sana hinde na lang sila nagpa-absorbed sa Smart.
But then again, I will be Globe user til the end…hehehehe 10 years in Globe prepaid…heheheehe happy pa din.
Mawawala na call and text unlimited ng Sun. Tsk tsk tsk.
At least you can expect a fair scrutiny from American government for a possible unti-competitive nature of the deal (AT&T who is buying T-mobile). But for Smart (PLDT) buying the Digitel (Sun cellular) pfffft no Philippine agency can stop that. Pay back time for large corporations who are bank rolling the elections! Consumers are in the losing end….:(
@brwneagle: I’m not sure, pero mukhang NTC ang pwedeng magblock ng deal na ‘to since NTC ang regulatory body ng government on airwaves. Maybe SEC or DTI also (?) for anti-monopoly reasons.
At least you can expect a fair scrutiny from American government for a possible unti-competitive nature of the deal (AT&T who is buying T-mobile). But for Smart (PLDT) buying the Digitel (Sun cellular) pfffft no Philippine agency can stop that. Pay back time for large corporations who are bank rolling the elections! Consumers are in the losing end….:(
http://www.reuters.com/article/2011/03/29/us-att-newyork-probe-idUSTRE72S4WB20110329
@razorous.
need mo magbayad ng licensing fee sa apple para maioffer ang iphone. sabi ng yuga ang tsismis daw e 6B pesos para maioffer ang iphone dito. nakaya lang to ng globe since kapartner nila yun singtel ng singapore.
anyway back to topic sa tingin ko mali ang mga title ng headlines about pldt at digitel. kasi nga wala naman cash na involve dito kundi share-swapping ang magaganap. parang nagpa absorb lang ata sila.
A little bit off topic. Bakit hindi offer ng Smart ang iPhone, yet Globe does?
IMO, it’s bad for the consumers. Sun is like the equalizer. Smart and Globe has poor service in a lot of areas. Sun is always an alternative. Were will healthy competition go now?
@plsburydoughboy – Sun will eventually ride or share Smart’s network so both will be bigger, just like what they had with TnT.
korek!!!!!!! they will share in frequency
I just hope that it will help boost Sun’s network coverage. Like what everyone said, it will be good for us consumers… yun nga lang, wag sana maging sakit sa ulo…
Digitel’s official disclosure on the Philippine Stock Exchange website states that the deal is an “all-share transaction” meaning despite the billions of Pesos involved, not a single centavo of cash will be/has been shelled out. In return for handing over the majority control of Digitel, the Gokongwei group will get a 12.8% stake at PLDT.
This 12.8% stake at PLDT also earns them 1 board seat at PLDT meaning it is not impossible for a Gokongwei to become ceo of PLDT in the future lol.
They mentioned that Sun Cellular will become a separate entity, so this could mean a wider network for Sun Cellular which I hope, while retaining the unlimited plans.
Hey Abe. I know the press release makes it clear Sun will stay a separate entity (at least for the moment), but is there any indication that Sun coverage is affected by this now? My experience is malakas talaga Sun coverage as long as you stay in NCR.
Less players in the wireless comm industry means more burden for the consumers. Yun naman talaga ang gusto ni pangilinan i monopolize ang negosyo ng telecommunications.
Salim Group ang may pakana nito.. Salim Group naman ang nagbibigay kay MVP ng pera nya e..
where’s an antitrust law when you need one.
I don’t like it but you have to admit it was a brilliant move by Smart. If you can’t beat them, buy them out.
I am a Smart prepaid user but I value Sun’s promotions as they force Smart and Globe to offer similar promos.
ciao!
It’s part of change, accept it. The competition will be much better I think. http://learner-spot.blogspot.com/
could you further explain why the competition will be better now that Smart bought Sun which gives consumer better and cheaper rates?
olats… better get your idea straight mate.
better ignore that guy. He’s been spamming his shitty blog with worthless comments like that for quite a while now.
eh, may lalabas daw na bagong telecom, (sabi-sabi) unlimited calls daw to all networks in the phils regardless kung landline or cellphone.. (rumor lang ah.. liberty daw)
thats the big question.. yan nga ayaw nila noon.. nagka demandahan pa nga dyan diba.. :) well antayin na lang naten ang susunod na kabanata
Now what will happen to SUN’S UNLIMITED PREPAID Scheme? Personally I like SUN than SMART. Mas tipid and convenient.
I agree ang laking tipid talaga if you use Sun.
Pero kung meron offer in the future na unlimited text Sun to Smart, panalo!
kami rin.. almost lahat sun gamit namin.. from mobile, to broadband, to landline.. hehehe! sobrang tipid talga at sobrang sulit lalo na ang unli calls and text.. ganda pa ng signal ng broadband nila sa amin, sulit talga..
don’t worry d yan mawawala
bad news to all sun subscriber.. unting unti mawawala lahat ng promo nila.. mamahal na naman ang text at call.. hays :) monopoly… anti competition.. grrrr.
we encourage everyone that all suncellular subscriber both prepaid and postpaid are still same products and service offered UNLIMITED sun services is still intack.. no worries about the deal made by MVP vs. JGI .. everything is fine.. SUNCellular is a Sister company of Smart Telcom.