Globe open to pursuing M&As over 700-MHz spectrum
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The Philippines’ Globe Telecom has revealed it is open to the possibility of acquiring conglomerate San Miguel Corporation’s (SMC’s) telecom subsidiaries to give it access to valuable 700-MHz spectrum.
Globe’s CEO Ernest Cu said the company would be open to acquiring SMC’s Wi-Tribe and High Frequency Telecommunications units, considering that efforts to appeal to regulator NTC to allocate it a portion of the spectrum have repeatedly been rebuffed since as early as 2005.
He said the prospect of buying the companies comes up occasionally and the company is always open to considering a deal.
SMC controls the entire 700-MHz band via its ISP subsidiaries. The company had been planning to form a joint venture with Australian operator Telstra to become the Philippines’ third mobile operator, but this partnership was called off last month after negotiations stalled.
According to the report, SMC still plans to use the spectrum to launch a mobile venture this year, initially targeting the metro Manilla region.
Globe and rival PLDT are meanwhile persisting in efforts to convince the NTC to assign portions of the band to them. The most recent attempt involved an appeal to the Philippine Competition Commission filed in February.
Questions & Answers
Q.Why is Globe Telecom interested in acquiring San Miguel Corporation's telecom subsidiaries?
Why is Globe Telecom interested in acquiring San Miguel Corporation's telecom subsidiaries?
Globe is interested in acquiring the subsidiaries to gain access to the valuable 700-MHz spectrum. Its appeals to the NTC for spectrum allocation have been repeatedly rejected since 2005.
Q.Which of San Miguel Corporation's telecom units is Globe Telecom considering purchasing?
Which of San Miguel Corporation's telecom units is Globe Telecom considering purchasing?
Globe Telecom's CEO, Ernest Cu, stated the company would be open to acquiring San Miguel Corporation's Wi-Tribe and High Frequency Telecommunications units.
Q.What were San Miguel Corporation's plans for the 700-MHz spectrum before Globe Telecom expressed acquisition interest?
What were San Miguel Corporation's plans for the 700-MHz spectrum before Globe Telecom expressed acquisition interest?
San Miguel Corporation had planned to form a joint venture with Telstra to become the Philippines’ third mobile operator. Despite negotiations stalling last month, SMC still intends to launch a mobile venture this year, initially in metro Manila.
Q.What other avenues are Globe and PLDT pursuing to gain access to the 700-MHz spectrum?
What other avenues are Globe and PLDT pursuing to gain access to the 700-MHz spectrum?
Globe and PLDT are continuing to try and convince the NTC to assign them portions of the band. Their most recent attempt involved filing an appeal with the Philippine Competition Commission in February.
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