Philippine Long Distance Telephone Company and Globe Telecom will jointly buy out the telecommunications assets of conglomerate San Miguel Corporation.
Under the terms of agreement, both companies will acquire a 50-percent equity stake in the SMC telco, further cementing a duopoly in the telecommunications industry.
The deal involves the 700 MHz frequency property of San Miguel Corp. and once completed, telcos will utilize the 700 MHz and would allow the deployment of a high-capacity LTE based wireless and fixed broadband network to deliver higher data rate and LTE wireless broadband service. With the use of the 700 MHz frequency, broadband prices can go down further benefitting consumers.
“This will enable existing operators to provide significantly improved Internet and data services to the public and to our customers in the shortest possible time,” PLDT Chief Executive Manuel Pangilinan said in a statement.
“This transaction offers a breakthrough opportunity, not only for the companies involved but also for the industry and the country,” he added.
PLDT said it will return to the government certain radio frequencies, which will allow for a third competitor to enter the market.
According to PLDT, the consideration for the acquisition is pegged at P69.1 billion.