Telstra Philippines, A No-Go : But San Miguel Will Still Push Through with Network Plans
Last year, we heard rumors that Telstra - Australia's largest telecommunications and media company - was planning to enter the Philippines in partnership with San Miguel Corporation, the largest conglomerate in our country.
Well, earlier this week, Telstra officially announced that it's no longer pushing through with the venture as the company failed to to reach the commercial arrangements with San Miguel that would allow the deal to proceed. No further explanation was given my Telstra CEO, Mr. Andrew Penn -- but he did express his disappointment with how the negotiations panned out.
"It is disappointing for sure. You do look at a lot of transactions and deals you are not ultimately able to complete, but this one is particularly disappointing because it is an exciting opportunity. We have invested a lot of time and effort and emotional energy into it, so it is disappointing. But in the end we have to make the right decision," he shared.
Despite the collapse of its landmark tie up with Telstra, however, San Miguel Corporation remains on schedule to provide call and text as well as mobile internet services to Pinoy consumers with the Australian company just offering support.
Interestingly, though, stock prices of PLDT and Globe Telecom rallied following Telstra's unfortunate announcement.
“Without Telstra, the perception in the market is that San Miguel’s telco venture will not be as great, since Telstra has the technical expertise. The announcement is definitely feeding the positive sentiment on PLDT and Globe. These stocks have underperformed in the past few months because of cloud over the industry by the threat of a third player entering the market," shared Mr. Rafael Palma Gil, Manila-based trader at Rizal Commercial Banking Corp, which has $1.72 billion in assets under management.
TP Thoughts: As many of you know, I work closely with Smart Communications as their digital media ambassador and the EIC of their consumer magazine, Smart Move. Nevertheless, like all of you, I am also a paying customer. In fact, contrary to what some of you may be thinking, I pay 100% for my calls, texts, and data consumption. Needless to say, I'm also primarily a tech blogger who wishes the best for our local business landscape and our tech industry. Now, if tighter competition is what will give us Pinoy consumers far better products and services and what will push all players to come up with more compelling innovations and promos that all of us can enjoy, then I'm all for it.
Well, earlier this week, Telstra officially announced that it's no longer pushing through with the venture as the company failed to to reach the commercial arrangements with San Miguel that would allow the deal to proceed. No further explanation was given my Telstra CEO, Mr. Andrew Penn -- but he did express his disappointment with how the negotiations panned out.
"It is disappointing for sure. You do look at a lot of transactions and deals you are not ultimately able to complete, but this one is particularly disappointing because it is an exciting opportunity. We have invested a lot of time and effort and emotional energy into it, so it is disappointing. But in the end we have to make the right decision," he shared.
Despite the collapse of its landmark tie up with Telstra, however, San Miguel Corporation remains on schedule to provide call and text as well as mobile internet services to Pinoy consumers with the Australian company just offering support.
Interestingly, though, stock prices of PLDT and Globe Telecom rallied following Telstra's unfortunate announcement.
“Without Telstra, the perception in the market is that San Miguel’s telco venture will not be as great, since Telstra has the technical expertise. The announcement is definitely feeding the positive sentiment on PLDT and Globe. These stocks have underperformed in the past few months because of cloud over the industry by the threat of a third player entering the market," shared Mr. Rafael Palma Gil, Manila-based trader at Rizal Commercial Banking Corp, which has $1.72 billion in assets under management.
TP Thoughts: As many of you know, I work closely with Smart Communications as their digital media ambassador and the EIC of their consumer magazine, Smart Move. Nevertheless, like all of you, I am also a paying customer. In fact, contrary to what some of you may be thinking, I pay 100% for my calls, texts, and data consumption. Needless to say, I'm also primarily a tech blogger who wishes the best for our local business landscape and our tech industry. Now, if tighter competition is what will give us Pinoy consumers far better products and services and what will push all players to come up with more compelling innovations and promos that all of us can enjoy, then I'm all for it.
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