Philippines, Let us Bid Goodbye to Our Lousy Internet

Photo from:http://videohive.net/

Philippines is one of the countries with the slowest, yet highly costing internet connection. The country's slow-speed internet has always been a burden to students and professionals alike. If an internet provider who could assure us of a better performance is available at a reasonable cost, why not grab it? Well, I guess we will have to say goodbye to lousy internet with this good news - Telstra!

Telstra is Australia's leading and largest  telecommunications and media company which builds and operates telecommunications networks and  markets voice, mobile, internet access and many  services.

Australian telco Telstra will spend up to US$1 billion for a planned wireless joint venture with San Miguel Corporation in the Philippines, the company’s chief Andy Penn told investors today.

That’s just Telstra’s share in the JV. Partner San Miguel, a conglomerate with diversified interests in the Philippines, will also put money in the business, along with some banks that will provide financing.

“We are not expecting it to be more than US$1 billion. That would be essentially Telstra’s equity investment. We could own 40 percent of the venture, which would also have external financing as well,” Andy was quoted as saying by The Australian.

Telstra and San Miguel haven’t reached a deal yet, but talks are ongoing.

If it pushes through, the pair is expected to shake up the duopoly of telcos PLDT and Globe Telecom in the archipelago.

“Frankly, let’s face it, go to the Philippines and experience the lousy service you get from the incumbent operators and you will see that [there’s] opportunity for a new operator to provide a much better quality service … I think there’s a significant opportunity,” Andy was again quoted as saying.

San Miguel is rolling out its mobile telecommunications network in the Philippines through unit Bell Telecommunications.

The conglomerate had wanted to enter the mobile business for years, but this was delayed because of other acquisition opportunities, its president Ramon Ang previously said.

Over the past years, San Miguel has aggressively moved away from its traditional food and beer businesses and into heavy industries such as infrastructure, power, oil refining, and telecommunications.

For Telstra’s part, it won’t be its first time to break into Asia. It acquiredSingapore- and Hong Kong-based internet services company Pacnet for US$697 million early this year. That deal was part of a A$5 billion (US$3.56 billion) budget it allotted for Asian ventures.

-Judith Balea/www.techinasia.com

No doubt Telstra will be the solution for our lousy, slow internet connection or provider.