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Telcos warns investigation into San Miguel deal is creating ‘atmosphere of uncertainty’.
Globe Telecom and PLDT on Wednesday reached out to the Philippine Competition Commission (PCC) in a bid to resolve concerns about their joint acquisition of San Miguel Corp’s (SMC’s) telco assets.
The PCC last week launched an investigation into the deal in order to evaluate its potential impact on competition. The decision was taken after transaction documents submitted by the operators to the watchdog were deemed inadequate.
"This is creating an atmosphere of uncertainty hanging over the industry, which in turn, causes investors to take a cautious position. We are willing to cooperate and work with the PCC for the approval of the transaction," said Globe general counsel Froilan Castelo, in a statement.
Globe and incumbent PLDT agreed to acquire 50% each of SMC’s telecoms businesses in late May for 52.85 billion pesos (€1.02 billion). The agreement includes spectrum held by SMC’s various subsidiaries, including valuable 700-MHz frequencies.
Castelo said that neither operator gained or lost market share through the deal because the majority of the SMC telcos involved in the transaction were not operating. The deal also resulted in frequencies suitable for 2G, 3G, 4G, and potentially 5G services being returned to the government.
Furthermore, both Globe and PLDT have already begun upgrading their base stations to support the acquired 700-MHz spectrum.
"It would be a shame to dismantle all these given the extensive resources being spent," Castelo said.
