SMC Telco acquired by PLDT and Globe
A P69.1-billion deal and a promise to improve their services; these are the makings of the joint deal by Philippine Long Distance Telephone Co. (PLDT) and Globe when they acquired Sam Miguel Corporation’s (SMC) Vega Telecom and its prized 700-MHz frequency.
The deal was confirmed by both PLDT and Globe last Monday, May 30. Both telecommunications giants agreed to an even split in acquiring SMC’s Vega Telecom, which includes the 700 MHz frequency it would have operated in. They also bought out New Century Telecoms and eTelco, Inc., which had ties to SMC.
FASTER MOBILE INTERNET. Globe and Smart, the country’s largest mobile service providers, will benefit the most from this deal. Photos for collage courtesy of Smart Schools and Globe Telecom official Facebook page.
They also agreed to give up a share of their 700 MHz, 850 MHz, 2,500 MHz, and 3,500 MHz to the National Telecommunications Commission. According to both telcos, this move should be enough for a third-party provider to come in and operate alongside the telco giants.
According to PLDT Chairman, President, and CEO Manuel V. Pangilinan, the deal will have a positive impact on mobile internet service, particularly with LTE coverage.
Globe, on the other hand, said the move made by both telcos is in line with President-elect Rodrigo Duterte’s call for improved service from telecommunications companies.
The 700-MHz spectrum will give both telecoms wider coverage and better reception indoors. The deal comes in months after talks between SMC and Australian company Telstra broke down.
Source: PLDT Globe acquire SMC Telco – Inquirer.net, Duopoly continues – Inquirer.net, GMA News Online, Rappler, CNN Philippines, Manila Times
