MERGED: Smart buys Digitel (Sun Cellular)

[Eve's Apple Project]

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^^ mao lagi bai..pero kabalo naman ta nga matabonan rana og laing issue.. dali ra kaayo kalimtan..sa karon pa nga nagkadaghan na ang mga isyo nga naggawas..di ni lisod ipalusot..hay..

[ong76win2]

Maayu pa ni sila sa US. They have that political will to stop a merger. I think we can compare this to the merger of our own PLDT and Sun Cellular.

[ain]

basig SAMSUN

Morag agree ko ani.. hahaha... SAMSUN tingale. hapit najud.. muntik na.. balihon lng nato gamay ma SAMSUN na hehehehehhehe

[gareb]

i still do not see how this can lead to anything good for the common consumer.

still standing by my earlier assertion that good regulation trumps this kind of competition.

[ong76win2]

Merger delay slows PLDT-Sun expansion

I can't post the whole article here because of copyright constraints. Please refer to the source link below.

Source: http://business.inquirer.net/19907/m...-sun-expansion

[ong76win2]

As I See It
NTC should reject PLDT-Digitel merger
By: Neal H. Cruz
Philippine Daily Inquirer
9:19 pm | Thursday, September 29th, 2011

I can't post the whole article here because of copyright constraint. Please click on the source link below. Thank you.

Source: http://opinion.inquirer.net/13079/nt...digitel-merger

[ong76win2]

PLDT-Digitel merger seen to kill smaller players
Published : Monday, September 26, 2011 00:00
Written by : DARWIN G. AMOJELAR SENIOR REPORTER

PHILIPPINE Long Distance Telephone Co.’s impending acquisition of Digital Telecommunications Philippines Inc. could threaten the viability of smaller players since “size matters” in the industry, according to a Canada-based research firm.

“In the current economic climate, leaders must have substantial market share and respectable financials,” XMG Global said. XMG Global benchmark shows that mobile operators, on average, require a market share of at least 30 percent to be profitable.

The merger pushes the combined market share of Digitel’s Sun and PLDT’s Smart to 69 percent, an increase in network size and coverage, and the ability to synergize, leverage costs and drive economies of scale. Market leader PLDT is acquiring a 51.55-percent stake in third-ranked Digitel from JG Summit Holdings Inc. for P69.2 billion.

XMG Global said the local telecommunications market can only support no more than three major carriers. Second-ranked Globe Telecom Inc. holds a 31 percent market share and with the entry of Liberty Telecom, XMG Global “expect[s] the market to expand to a new, but uneasy equilibrium that would benefit consumers.”

The research firm however expect no significant decline in pricing or drastic changes in the telecom landscape until the issue of interconnectivity charges are redressed or preferably removed altogether.

“Although PLDT is adamant that it will not end Sun’s unlimited pricing plans, it is too early to tell on how this will impact the discount cellular product offerings,” XMG Global said.

It noted that PLDT, Globe and other emerging players will be forced to review and rethink their strategies and this can eventually result in changes in services bundling and pricing. The National Telecommuniations Commission is drafting conditions for the approval of the PLDT-Digitel deal.

Source: PLDT-Digitel merger seen to kill smaller players | Top Business News

[ong76win2]

Gokongweis pushing through with Digitel sale
Published : Friday, September 30, 2011 00:00
Written by : Darwin G. Amojelar

THE Gokongwei group on Thursday said it would push through with its multibillion-peso sale of Digitel to Philippine Long Distance Telephone Co. despite the delay in regulatory approval.

“We’re still supportive of the transaction . . . We have to wait. The government is still assessing it and they have 90 days. You just have to give them adequate time to make a proper decision,” Lance Gokongwei, JG Summit Holdings Inc. president told reporters on the sidelines of the Asean 100 Leadership Forum in Makati City.

PLDT is purchasing a 51.55 percent stake in Digital Telecommunications Philippines Inc. from JG Summit at a cost of P69.2 billion.

The National Telecommunications Commission is drafting conditions for the approval of the PLDT-Digitel deal.

Department of Transportation and Communications Secretary Manuel Roxas said the government is still working out the details of a solution to the PLDT-Digitel deal that would prevent monopoly in the telecom industry.

Earlier, sources said the NTC is likely to approve the PLDT-Digitel deal because the transaction does not violate any law.

A Senate committee that looked into the transaction also had issued a report saying the deal complied with Philippine laws.

The report added that there was no basis to indicate that the deal will restrain competition within the telecom industry or hurt public interest.

PLDT shares fell to P2,160 each on Thursday from P2,180 on Wednesday, while Digitel shares rose to
P1.47 from P1.41.

Source: Gokongweis pushing through with Digitel sale | Top Business News

[ong76win2]

NTC aims to issue PLDT-Digitel decision this month
Monday 10 October 2011 | 23:46 CET

The Philippines' National Telecommunications Commission (NTC) is planning to issue a decision on the purchase of a majority stake in Digitel by PLDT in October. The plan by Philippine Long Distance Telephone (PLDT) to acquire a 51.55 percent stake in Digital Telecommunications Philippines (Digitel), which owns the Sun Cellular brand, raised opposition from rivals and lawmakers. This led to an extensive regulatory review which has yet to finish and forced the company to push back the deal's deadline several times. "We're doing our best to come up with a decision within the month," NTC commissioner Gamaliel A. Cordoba said. The Commission is looking at such issues as impact on consumers and the wider economy as well as the allocation of frequencies, BusinessWorld reports.

Source: NTC aims to issue PLDT-Digitel decision this month - Telecompaper

[ong76win2]

PLDT willing to give up 10 MHz of 3G spectrum - report
Monday 17 October 2011 | 03:43 CET

Philippine Long Distance Telephone (PLDT) has agreed to give up some of its 3G spectrum to clear the way for its acquisition of a majority stake in Digitel. PLDT would be willing to divest 10 MHz of 3G spectrum, the Manila Times reports citing a source familiar with the matter. At present, the PLDT group has a combined 25 MHz of 3G spectrum with 15 MHz owned by mobile unit Smart Communications and another 10 MHz by Connectivity Unlimited Resources Enterprises (Cure). PLDT is likely to give up Cure's spectrum. Rival Globe Telecom earlier said that PLDT should divest excess spectrum if it is to take over Digitel's 10 MHz of 3G spectrum as well. PLDT plans to acquire a 51.55 percent stake in Digital Telecommunications Philippines (Digitel), which owns the Sun Cellular brand. The plan raised opposition from rivals and lawmakers which led to an extensive regulatory review which has yet to finish.

Source: PLDT willing to give up 10 MHz of 3G spectrum - report - Telecompaper