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Wednesday, March 30, 2011

TV5'S PARENT FIRM BUYS SUNCEL! IS PLDT UP TO MONOPOLIZE THE TELCO INDUSTRY?

TV5's Chairman and Chief Executive Officer, Manuel V. Pangilinan disclosed on Tuesday that Philippine Long Distance Telephone Co. (PLDT)  is buying a majority stake in the Gokongwei-owned Digitel Telecommunications Philippines Inc — operator of Sun Cellular. PLDT Group which owns Media Quest, the parent firm of TV5, will now be merging the brands Sun Cellular, Smart, Talk N Text and Red Mobile under the country's largest and dominant conglomerate.


The telecommunications giant will buy a 51.5%  stake in Digitel Telecommunications for P69.2 billion, the payment of which will be done under a mandatory offering of PLDT shares at P2,500 a piece under the name JG Summit Holdings Inc.

Following the acquisition, James L. Go, chairman and CEO of JG Summit Holdings, will occupy a board seat in PLDT, and will then hold around 12% of the shares of the whole PLDT Group after the transaction iscompleted.

Combined, the two telcos will account for about 67 % of the local market in revenue terms, with Ayala Group's Globe Telecom taking the majority of the remaining 33%.

Good or bad for Consumers?
Following the mereger, PLDT Group chairman Manuel V. Pangilinan said "The brand equity of Sun Cellular will enhance our mobile offerings, so we wish to preserve this moving forward," "We will also retain the unlimited products and services of the group, so that consumers are able to continue benefitting from them."
Plans for Digitel

But consumers are wary of this development specially that JG Summit's entrance in the Telecom industry almost decade ago introduced the unlimited offerings that the consumers of all telecom players are now enjoying. 

Considering the saturation in the Telecommunications Industry, it is compelling to anticipate a reduction in the unlimitted packages as PLDT struggles to push more growth in the text messaging and voice call revenues.  The Duopoly that resulted from this mereger might bring the unlimitted offerings to its end as the combined subscriber held by PLDT after this transaction will stand around 70%!

However,  PLDT made it clear that it intends to keep Digitel's mobile operations — Sun Cellular — separate and intact.

PLDT said it hopes to make available to Digitel subscribers the depth and breadth of PLDT service offerings, specifically 3G — or third generation cellular technology — and broadband Internet.

For its part, Digitel is bringing into the alliance with PLDT some 450,000 subscribers to PLDT’s 1.8 million subscriber base in fixed line operations. Sun Cellular’s number of mobile subscribers is currently pegged at around 14 million.


Is MVP  BUYING everything?

PLDT has recently engaged in large scale buyouts as it expands from its mobile operation business to Infrastructure, Power Distribution and Media. It acquired significant shares in Meralco, Business World, Cignal DTV, First Pacific Tollways Corporation, ABC/TV5 and now JG Summit's DIGITEL. Other providers in the market, like the Lopez-owned SkyCable Corp., are providing new and compelling services that drive competition in the market. But there also news that the Lopez Group, the Parent firm of ABS-CBN Corp.,  is considering selling one of its affiliates to PLDT Group  to fund its expansion for its Power Generation Business.

Globe's Statement

The buy-in effectively leaves two major players in the local mobile telecommunications market: PLDT and Globe Telecom.

For its part, Globe issued a press statement just hours after the announcement of the buy-in, saying it remains "focused" on its current strategies and will "build on the momentum that has been created [by the company] since the second half of 2010."

"The Digitel and PLDT merger will not fundamentally change our strategy. We stand ready to compete, and to defend and grow our market share," said Ernest L. Cu, Globe president and CEO in the statement.

"This industry has always been intensely competitive, and we have been a strong challenger to a dominant incumbent all this time. We will continue to focus on delivering relevant products to our retail and corporate customers, providing differentiated customer service, and enhancing our network to deliver the best experience possible to our subscribers," Cu added.

Globe registered a mobile subscriber base of 26.5 million in 2010, up 14 percent from 2009. The company also reported a 1.1-million combined wired and wireless broadband subscribers, up 50 percent in teh same comparable period. 

From this major Development, do you think this will be of best benefit for the consumers?... investors?...and  the market?

18 comments:

KAPAMS said...

lalong sasama serbisyo ng smart nyan dhil iisa na lang kalaban nila. kya nga ni-liberalize ang telco industry para mawala na monopoly ng pldt nuon at ma improve ang telecom service. hayz, kpag umiral nga naman ang kasakiman.

Anonymous said...

just like etong admin ng site nato..bayaran lng ng sardinas at noodles,asahan mong pupurihin na ng todong todo ang paborito nyang kapusucks!!! so cheap admin! Aminin!!!

Chacha said...

Naku bka mangain na din ng load ang sun.. saka paikliin ang validity ng regular load..naku naman..

Anonymous said...

i hate ung mga programa sa tv 5...

sa face to face. napansin ko na inaantay munang magkasakitan yung dalawang parties bago awatin...nakakahiya kasi may pari, at abogado pang kasama sa programa.

at yung willing willy. ayun may pinagsayaw palang bata ng macho dancing..

at yung juicy....sus...di ko makakalimutan ang sinabi ni cristy na mukhang unggoy si nina...yung singer....

iba ang mga programa sa tv 5...kakaiba...

KAPAMS said...

talaga sinabi ni cristy yun? sus naman, eh ano tawag nya sa mukha nya. bakulaw? nyahaha

network war said...

I Think some of the reasons why JG Summit decided to sold DIGITEL to PLDT are because of the following:

1. It wants to erase its billion-worth of debt, under the agreement, PLDT will absorb Digitel's debts;

2. Digitel will enjoy better profits: PLDT has better profit margins than Digitel;

3. Deviate from a maturing industry. The Telecom industry is maturing, with a penetration rate of 90%. So with its ballooning debts and shrinking potential for growth, its wise to break away; and

4. Digitel wants to enjoy PLDT's diversifying and growing portfolio. PLDT has engaged in a numerous investments recently, specially in Power and Infra that has an attractive room for huge profits.

KAPAMS said...

kaya lng, the way things are turning out. mukhang balik na naman sa monopoly ang PLDT.

cooldudeTWOFIVE said...

mga peeps nu ba magagawa natin e kung un tlaga ang gusto nila, db?wag na masyado ma-high blood kc si utot bubwelo yan,tuma-timing lng ng magandang article in favor sa stasyon nya...wahaha

cooldudeTWOFIVE said...

ay oo nga pala b4 i forgot, narinig ko lang kaya di nai-angat ni ritsard yung primetime ng gma kc namigay din ng de-lata ung DOS,da reason is bkit sumemplang ung mga show nila kc mas gusto nung mga tao ung bigay ng DOS,kc nga eto compare nyo sa gma mga de-latang sardinas, pero sa ABS-CBN de-lata nga pero corned tuna naman..o kung ikaw papa-piliin sardinas o corned tuna?o db dun kna sa tuna mas masarap pa....hahahaha! chos!

Anonymous said...

Blogger network war said...

I Think some of the reasons why JG Summit decided to sold DIGITEL to PLDT are because of the following:

1. It wants to erase its billion-worth of debt, under the agreement, PLDT will absorb Digitel's debts;

2. Digitel will enjoy better profits: PLDT has better profit margins than Digitel;

3. Deviate from a maturing industry. The Telecom industry is maturing, with a penetration rate of 90%. So with its ballooning debts and shrinking potential for growth, its wise to break away; and

4. Digitel wants to enjoy PLDT's diversifying and growing portfolio. PLDT has engaged in a numerous investments recently, specially in Power and Infra that has an attractive room for huge profits.

____

Kaya pala dalawang Lopez groups company ang nakuha na niya, MERALCO at isang power plant. What's next ABS CBN kasi sa laki ng utang HAHA

Anonymous said...

Anonymous cooldudeTWOFIVE said...

ay oo nga pala b4 i forgot, narinig ko lang kaya di nai-angat ni ritsard yung primetime ng gma kc namigay din ng de-lata ung DOS,da reason is bkit sumemplang ung mga show nila kc mas gusto nung mga tao ung bigay ng DOS,kc nga eto compare nyo sa gma mga de-latang sardinas, pero sa ABS-CBN de-lata nga pero corned tuna naman..o kung ikaw papa-piliin sardinas o corned tuna?o db dun kna sa tuna mas masarap pa....hahahaha! chos!

_____

KORNY ng JOKE mo teh. Pero infairness pwede ka kasuhan ng ABS CBN AT GMA ng LIBEL dyan.

Anonymous said...

Kaya pala dalawang Lopez groups company ang nakuha na niya, MERALCO at isang power plant. What's next ABS CBN kasi sa laki ng utang HAHA
-------
Lopez parin ang may ari ng FPHC and its subsidaries.

Anonymous said...

KORNY ng JOKE mo teh. Pero infairness pwede ka kasuhan ng ABS CBN AT GMA ng LIBEL dyan.


----------

bago k lang ba sa ganitong blog teh?bkit di mo review pep

Anonymous said...

ayan na naman ung mga kapuso na super mentioned ng utang ng abs-cbn 2 hahah....

ung utang ng abs-cbn 2 halos sinlaki lang ng total assets ng gma...kaya huwag kang mayabang kapuso....hahahah


ABS-CBN 2 PA RIN ANG NO.1 NETWORK SA BANSA....

AT ANG PINAKAMAYAMAN WITH THE TOTAL ASSET OF 35B........

KAYA TANTANAN...

cooldudeTWOFIVE said...

check nyo scoop box ng pep ratings last night,captain barbel vs.mutya TINALO LANG NAMAN NG MUTYA ANG KALABAN,it shows na ala na talaga pag-asa idol ni utot,pero in fairness kanila na lang ung hapon,sa DOS ang primetime. chos!

Anonymous said...

March 29, 2011 AGB Household ratings.

Captain Barbell 24.5
Mutya 25.4
Minsan Lang Kita Iibigin 25

Yan ba ang Primetime KING nang GMA??? Pinalubog ni Mutya na bago lang sa TV. Partida pa yan AGB-GMA tandem..Nasaan na ang Divine Intervention?????bwahahaha

Pinoy Sharing said...

Kapag tuluyan nang nag merge ang PLDT at Digitel wala nang makakapigil pa sa kanila na kontrolin ang Telecommunications sa buong Pilipinas. Nagtatapon lang pera ang mga BOBONG at TANGANG Pilipino sa serbisyong ng SMART,TNT,REDMOBILE at ngayon naman ang SUNCellular na dati matipid dahil sa mga UNLI nito pero pa'no lamang kung magsama na sila eh di kayang-kaya na nilang diktahan ang mga kawawang subscribers..... Kaya sana naman mag-isip naman ang mga Pilipino sa isyung ito..

Anonymous said...

hahaha... bitter mga kapams..lalo na ung sardinas giver na gma7..hahaha

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