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Selling telco assets difficult, says SMC's Ang

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Vivienne Gulla, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2015/nation/12/22/ramon-ang.jpg"/></figure></div>MANILA - San Miguel Corp. (SMC) president Ramon Ang on Tuesday said the decision to let go of the company&#x27;s telco assets was made with a heavy heart.Ang said it was very difficult, but SMC decided to pursue that path to do away with the long legal battles that come with controlling the 700 megahertz frequency spectrum.He cited the cases filed against SMC before the National Telecommunication Commission (NTC) seeking the re-distribution of the frequency.He added that it would be a disservice to the Filipino people to hold on to it while waiting for technical partners to come in. Ang said most of them have been scared off by the legal challenges that SMC faces over the frequency.In March, Australia&#x27;s biggest phone and internet provider Telstra Corporation backed out from talks of a joint telecommunications venture, citing failure to agree on equity investment.<div><a href="http://news.abs-cbn.com/business/v1/03/14/16/san-miguel-telstra-end-joint-venture-talks" target="_blank">READ: San Miguel, Telstra end joint venture talks</a></div>Ang said Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom approached SMC regarding the deal, and it took only two months to close it.He said SMC wanted to make sure the two companies will deliver their promise of providing better internet service the soonest time possible.<div><a href="http://news.abs-cbn.com/business/05/30/16/pldt-globe-to-acquire-san-miguels-telecom-business" target="_blank">READ: PLDT, Globe to acquire San Miguel&#x27;s telecom business</a></div>Ang also denies claims that SMC&#x27;s move killed all hope for a third party player in the telecom industry.He said the NTC recalled some frequency for a possible third player to come in.Ang added that the 20 megahertz should be enough for a third player to utilize and capture 35 percent of the market share by putting up 6,000 cell sites nationwide.Meanwhile, he said the P69.1 billion from the sale of its telecom business is a mere cost recovery.Ang noted that even before the sale, SMC had enough money to invest in expanding its core businesses, particularly in food, power, tollways, oil refinery, and petrochemical business.SMC earned P4 billion pesos in the first quarter of 2016, reflecting a growth of 23 percent compared to the same period last year.Ang projects the annual net income of SMC to be between P12 billion to P15 billion this year.

MANILA - San Miguel Corp. (SMC) president Ramon Ang on Tuesday said the decision to let go of the company's telco assets was made with a heavy heart.

Selling telco assets difficult, says SMC's Ang

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Selling telco assets difficult, says SMC's Ang

Vivienne Gulla,

ABS-CBN News

Published May 31, 2016 05:29 PM PHT

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Updated Jun 01, 2016 11:48 AM PHT

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PLDT

Globe

San Miguel

Ramon Ang

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