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Closed Philippines telco Globe tells Telstra to bring it on

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Telstra's plans to enter the Philippines have been brushed off by the country's biggest mobile carrier, Globe, which says it has seen off major competitors before.

You do not have permission to view the full content of this post. Log in or register now.. Talks are reasonably advanced and have been under way for several months.

A deal could see Telstra invest hundreds of millions of dollars to build a joint venture that would give local customers 4G services. This would be in line with the company's strategy to earn billions of dollars from Asia's rising middle class by 2020.

But analysts have warned that the Philippines has a competitive mobile market that is dominated by two main players – Globe, which is 46 per cent owned by Singtel, and the country's biggest telecommunications company, PLDT.


Globe chief executive Ernest Cu has helped turned his telco's fortunes around by adopting many of the same customer-centric policies promoted by Telstra, turning it into the nation's leading mobile carrier.


Globe in 'unique position'
He told Fairfax Media in an email that Globe had unique strengths that gave it advantages in the local market.

"Globe is currently the Philippines' leading provider in mobile and is in a unique position of being the purveyor of the Filipino digital lifestyle," Mr Cu said. "While the entry of another competitor into the mature Philippines telco market is something we are closely looking at, Globe has had a long history of fighting a larger, well-resourced incumbent.

"We were a challenger brand for quite some time and now we have emerged a leader."

Mr Cu's comments are in line with predictions by Nomura research analyst Sachin Gupta that local telcos in the Philippines would not take Telstra's entrance lightly.

Telstra's potential partner, San Miguel, is a major producer of foods and beverage but its attempts to expand into the telecommunications and mobile market since 2009 have met with poor results.

Both parties would aim to combine Telstra's engineering expertise and funding injections with San Miguel's strong mobile spectrum holdings and its ability to do business in the highly complex market, in order to succeed.

Sources said San Miguel has been hiring telecommunications executives and consolidating its majority ownership of phone and internet providers in preparation for a relaunch of services.

The Philippines is a potentially lucrative market for Telstra, thanks to its dense population and the lack of high-speed 4G services, which cover less than 5 per cent of the market.

Telstra under Mr Penn's leadership, as its head of international operations, chief financial officer and now CEO, has been pushing deeper into the Asian market through partnerships with local carriers.

You do not have permission to view the full content of this post. Log in or register now. started selling products this year and is understood to be performing well.
 
maganda to para sa mga consumers, magkakaroon ng mas maraming pagpipilian ang mga tao. kung magkakaroon ng magandang competition sa mga telcos baka sakaling umayos at gumanda ang mga binibigay ninang services.
 
Tama! Sana walang capped yan. Problema kasi dito sa pinas pag marami nang mga telcos. Okay sa simula kalaunan panget na service. Problema pa ang monopolya liked smart and pldt. Wala rin magawa ntc natin. Pag maganda service ng kabila, hina häçk naman ng iba. Mga häçkers na binabayaran para lang makapanira ng iba.
 
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