San Miguel Corporation, the potential joint venture partner of Australian firm Telstra, holds an ace up its sleeve. It currently owns 90% of the 700MHz frequency range that is said to be the ideal frequency for mobile data service.
The 700MHz frequency allows the service provider to use lesser cell sites because the signals at this frequency can travel further compared to the higher frequencies used by the existing large mobile data players Globe and Smart.
In 2005, Globe requested the National Telecommunications Commission or NTC for an allocation of the 700MHz frequency but was denied. Just recently, PLDT joined the call for redistribution of the 700MHz frequency through an auction. Globe reiterated their request for allocation this year.
This is probably why Telstra was confident in its announcement last month that if the joint venture with SMC will push through, they would be able to provide much better service than Globe and PLDT.
However, some netizens interpret this move by Globe and PLDT as an attempt to prevent a 3rd player to compete. Others say that such requests are just excuses of the poor service provided by the two telcos. Others commented that Globe and Telco should just reduce advertising expense and spend the money instead on better infrastructure.