PLDT Acquires JG Summit’s Digitel; Sun Cellular to Benefit 3G and Broadband Services of the Philippine Telco Juggernaut

PLDT Acquires JG Summit’s Digitel; Sun Cellular to Benefit 3G and Broadband Services of the Philippine Telco Juggernaut

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The Philippine Long Distance Telephone Company (PLDT) and JG Summit Holdings, Inc. (JGS) announced Tuesday, the acquisition of Digital Telecommunications Philippines, Inc. (Digitel) by the Philippine Telco juggernaut, PLDT.

Digitel is the country’s second-largest fixed-line telecommunication company by the Gokongwei family-owned JGS Holdings; and is the owner of the Digitel Mobile Philippines, Inc. or better known for its brand as Sun Cellular.

The acquisition is an “all-share transaction” in which PLDT will take over 51.55% of Digitel’s total share, amounting to Php 74.1 billion, and in exchange – JGS Holdings will get 12.8% of PLDT’s stake plus a seat at the Telco’s Board of Directors. The acquisition is expected to be completed by the end of the second quarter this year.

Though it’s obvious that PLDT (which operates its wireless subsidiary, Smart Communications Inc.) would have the full control of Digitel – the disclosure to the Philippine Stock Exchange says “mobile operations of Digitel will remain separate and intact”; to maintain and capitalize on Sun Cellular’s operations to continue serving specific market segments particularly the “unlimited” service.

The acquisition of Digitel/Sun Cellular will allow them to leverage PLDT/Smart Communications’ infrastructure, thus providing a better service to consumers; however the merger could also result into less competition, not unless the lone Globe Telecom beat all the odds, perhaps for the common good. What do you think?

Update: Sun Cellular Unlimited Call and Text Services To Continue Despite PLDT’s Acquisition

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Bert Padilla

Founding-Editor of Cebu Tech Blogger where he shares insights in eCommerce, Digital Marketing, Ad Ops, Tech, Startups, Technopreneurship, Life Goals and Hacks. He's the brainchild and ninja of a Cebu-based digital agency, TekWorx.Digital, with ventures TekWorx, (eCommerce and Digital Marketing), AdWorx (Outsourced Ad Ops for Publishers) and BlogWorx (full-fledged Blog Development service). Read his Full Curriculum Vitae. For training and consultancy, services, speaking engagements, blog partnerships or media invites, click here. Alternatively, get in touch with him on Messenger.

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  1. Pingback: itemprop="name">Globe Telecom to Bid for Red Mobile’s 3G Spectrum | Cebu Tech Blogger | Philippines Technology News & Reviews

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