MANILA, Philippines - The country's largest telco, Philippine Long Distance Telephone Co. (PLDT), will continue to offer Sun Cellular's unlimited voice and text services even after it completes its acquisition of Digital Telecommunications Philippines Inc. (Digitel).
PLDT President and CEO Napoleon Nazareno made this statement to allay "concerns" the deal might result in the withdrawal of Sun's bucket-priced or unli offerings.
"Our intention is to maintain Sun's current offers and further improve them," he said.
"That's not gonna happen. There is a market for unli services and we intend to be the best in serving that market," Nazareno added.
On Tuesday, PLDT announced it agreed to acquire 51.55% of Digitel, plus debts, from JG Summit Holdings Inc. for P69.2 billion. It would also make a tender offer to minority shareholders, which, if taken up, would hike the acquisition cost to P74.1 billion.
PLDT will pay JG Summit in the form of shares, equivalent to over 12% stake in the Pangilinan-led telco.
Nazareno said they will further study Digitel's operations over the next 3 months to determine what more synergies could be formed with parent PLDT and other units like Smart.
"One clear opportunity is mobile broadband. Leveraging the combined networks of PLDT, Smart and Sun, we plan to expand the reach and raise the quality of mobile broadband services for Sun subscribers," he said.
Smart Telecom is the mobile arm of PLDT. Its subsidiary, Connectivity Unlimited Resource Enterprise Inc. (CURE), started offering the Red Mobile brand in 2008 to compete head-to-head with Sun.
However, Red saw its prepaid subscriber base fall by 752,313 to reach 381,477 in September 2010.