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Problems and Challenges: The Reasons Behind The Acquisition

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9 views2 pages

Problems and Challenges: The Reasons Behind The Acquisition

Hi, go and aim for the moon!

Uploaded by

Ameyzing
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PROBLEMS AND CHALLENGES: THE REASONS BEHIND THE ACQUISITION 

“We entered into this transaction as a solution to harmonize the spectrum assets in the
country and immediately unlock the benefits of the underutilized frequencies. Ultimately, our
goal is to provide our customers with a better experience on our mobile data and home
broadband services progressively over the next twelve months,” said Ernest L. Cu, President and
Chief Executive Officer of Globe. “Coupled with our execution excellence as the preferred brand
for Filipinos’ digital lifestyle choices, the additional frequencies will provide the much-needed
capacity to improve mobile browsing speeds that our customers would enjoy.” 
PLDT Chief Executive Officer, Manuel V Pangilinan, said, "This transaction offers a
breakthrough opportunity, not only for the companies involved but also for the industry and the
country. This will enable existing operators to provide significantly improved Internet and data
services to the public and to customers in the shortest possible time. At the same time, it leaves
the door open for new entrants into the industry. Taken together, this will enable the industry to
better support the country's development efforts - especially significant with the onset of a new
Government." 
This Acquisition will provide significant benefits to PLDT and GLOBE consumers,
further improve Internet and data services for the public, and speed up the country's overall
development efforts. Following the Acquisition, customers will progressively experience faster
Internet and higher call and data quality across the fixed and mobile networks of PLDT and
Globe. Capacity and coverage, both indoor and outdoor, will be expanded and enhanced. This
will enable the two giants to provide attractive mobile connectivity and digital services to their
consumer and enterprise customers at affordable prices. Stronger networks and connectivity are
key enablers for individual and enterprise sector productivity and cost-efficiency.
However, the hold Globe and PLDT have on the telco market has been controversial.
Their supposed duopoly was heavily discussed during the presidential and vice-presidential
campaigns. Candidates said the country's sluggish internet speeds and high prices were due to the
lack of competition in the industry. Industry watchers had hoped the SMC-Telstra joint venture
would become an important third player in the market to help push prices down and make
services better. In a statement, SMC said it decided to sell its assets because the legal and
commercial risks in the investment were far too large to take on alone. It added that the deal
seemed the most beneficial for consumers since Globe and PLDT would be able to maximize the
assets much faster. "This is a sacrifice we have to make to finally unlock the full potential of our
high-quality, mobile broadband spectrum faster and allow consumers access to its benefits
through the combined resources, network, and expertise of the two carriers," SMC President and
COO Ramon Ang said in the statement.

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