SMC -Telstra, Australia's biggest telco in JV talks to provide 4G service in the Philippines
Telstra SMC to provide 4G LTE service in the PHL
Philippines, October 7, 2015
More competition means better service and lower costs?
Telstra, biggest telecom company in Australia, disclosed to the Australian Stock Exchange August 28, 2015 that it is in talks with SMC, the Philippines biggest conglomerate for a joint venture to provide wireless 4G service in the Philippines.
It just bought out its Qatar based partner in Liberty Telecom to gain 51% control with a P5.75 cash payment ($123.15 million). SMC disclosed this to the Philippine Stock Exchange. The partner, Vega Telecom had 35.7% stake in Liberty Telecom (which operates Wi Tribe)
Vega bought out Extelcom, the first mobile phone operator in the Philippines. It was established by the Ongpin
Some think this is a risky move for Telstra. SMC venture in Liberty Telecom is not so successful
SMC subsidiary, Liberty Telecom, offering Wi Tribe did not succeed. The 4G LTE 700 hz is not yet supported by most smartphones.
Will this JV augur changing telco rules? Will the duopoly now wake up from their adamance if not complacency?
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