NTC Approves PLDT’s Acquisition of Digitel; Smart and Sun Cellular Merged to Beat Globe Telecom

The National Telecommunications Commission (NTC) on Wednesday has approved PLDT’s application to acquire 51.55% share, amounting to Php 69.2 billion of Digital Telecommunications Philippines, Inc. or Digitel.

Digitel is the Philippines’ second largest fixed-line telecommunication company and owns the country’s third largest mobile telco, Digitel Mobile Philippines or more popular as Sun Cellular. The planned acquisition of PLDT over Digitel (originally a subsidiary of JG Summit Holdings Inc.) which is an “all-share transaction” first broke the news in March, which raised concerns from consumers for possible substantial market dominance leading to cutthroat competition.

Now that the acquisition of Digitel is official, that makes the Pangilinan-led telecom giant the owner of Sun Cellular. And that means Smart Communications and Sun Cellular are merged to beat the Ayala-led Globe Telecom in mobile/cellular telephony and broadband services. (more…)

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

Just recently, the Philippine Long Distance Telephone Company (PLDT) together with JG Summit Holdings, Inc. (JGS), announced that they entered into an “all-share transaction” in which JGS will exchange stake of its telecommunication business, Digitel, for a new PLDT shares.

The merger will then pose ownership of PLDT over Sun Cellular, Digitel’s wholy-owned subsidiary in mobile business best known for its unlimited voice and SMS services. Sun Cellular is also the 2nd main competitor (next to Globe Telecom) of Smart Communications, PLDT’s wholy-owned mobile and internet business segment. Smart Communications also owns both Talk ‘N Text and Red Mobile brands running on EDGE/UMTS and 3G networks, respectively.

Now that PLDT’s acquisition of Digitel is expected to be completed in the next three months, the biggest concern for consumers is whether there would still be a good competition in the “unlimited” offers. Because for Sun Cellular subscribers, they had switched to the network probably due to the competitive offers. No worry folks, though, because PLDT just announced it will continue to offer Sun Cellular unlimited voice and text services even after the acquisition. (more…)

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