MANILA (UPDATE) - Talks between San Miguel Corporation and Australia's largest telecom company Telstra for a planned joint telecommunications venture have been abandoned after both companies failed to reach an agreement.

San Miguel president and chief operating officer Ramon Ang said the two firms "worked hard to come up with an acceptable resolution to some issues," but both agreed that they can no longer continue with the talks.

"I believe this is best for all parties," Ang said.

In a disclosure to the Australian Stock Exchange, Telstra's chief executive officer Andrew Penn said the two companies were unable to agree on commercial arrangements to proceed with the venture.

"Despite an enormous amount of effort and goodwill on all sides, we were simply unable to come to commercial arrangements that would have enabled us to proceed," Penn said.

Despite the failed talks, San Miguel said it will pursue its plans to enter the telecom market.

Telstra, meanwhile, has offered to continue technical work design and construction consultancy support to the Philippine company.

"San Miguel Corp.'s entry in the telecom market will definitely be a game changer. When we launch, consumers will benefit from better, cheaper service," said Ang.

"We are not rushing. What's important is that we give Filipinos a third and better choice that they have been deprived of for the longest time," he added.

San Miguel and Telstra were in talks for four months. They initially planned to build a mobile network in the Philippines, with Telstra offering to do the technical network design and construction consultancy.

Telstra had planned to invest $1 billion in the joint venture.

WATCH: Telstra's entry into PH may disrupt Globe, PLDT duopoly - analyst

Ang earlier said they will push through with launching a telecoms company with or without the Australian firm.

Once San Miguel launches with or without Telstra, it will compete with Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom. -- With ANC