Telstra, an Australian telco, plans to invest US$1B in a possible joint venture with conglomerate San Miguel Corporation. Telstra chief Andy Penn was quoted by The Australian that the telco giant may spend up to $US1 billion if it closes the deal with SMC. Foreign companies may own up to 40% equity in Philippine corporations.
Penn expects a great opportunity for Telstra in the Philippines because there are only two incumbents with services that could be improved. Telstra could provide a strong alternative to subscribers in the Philippines who have been clamoring for data services that are at par with western countries.
San Miguel Corporation will roll out its mobile data network through its telecommunications unit Bell Telecommunications.
Telstra has been present in the Philippines for more than six years through its call center operations. In 2013, the company launched its own directly operate call center in Makati.
EBITDA (Earnings before income tax, deprecation and amortizations) is relative strong for the incumbent players. Telstra is bullish on the prospects of the joint venture with SMC.
Penn was also quoted as saying that the services of the current players are “lousy“.