Everybody is excited the news that a possible third telco is coming to the Philippines. Australian telecommunications giant Telstra is definitely coming to the Philippines as it partners with Filipino food and beverage giant San Miguel Corporation. This is confirmed by Telstra CEO himself.
Telstra CEO Andrew Penn said that the company is investing up to $1 Billion as an additional financing for the new telco that San Miguel is putting up. “We are not expecting it to be more than $1 billion. That would be essentially Telstra’s equity investment. We could own 40 per cent of the venture which would also have external financing as well,” Mr Penn said.
Currently, Telstra is still in talks with San Miguel but no deal has been struck yet. But Telstra’s possible entry will disrupt the existing duopoly between PLDT and Globe. Because of the this duopoly, people have no option. Customers have been complaining about slow internet service that ranked the country among the slowest in the region.
Telstra CEO says “Frankly let’s face it, go to the Philippines and experience the lousy service you get from the incumbent operators and you will see that the opportunity for a new operator to provide a much better quality service … I think there’s a significant opportunity. Of course any new venture comes with its level of risk which is why we are being considered and measured.”
Well fellow techies, let’s just wait and see how negotiations between Telstra and San Miguel progresses. Let’s hope they could make it fast because personally, we are excited to switch and drop our current service.