It has been recently reported that local telecommunications firm Globe Telecom urged government and concerned agencies to study the share-swap deal between Philippine Long Distance Telephone Co. (PLDT), owner of Smart Telecom, and Digital Telecommunications Philippines Inc. (Digitel), owner of Sun Cellular.
PLDT acquired Digitel for P69.2 billion, raising concerns of monopolization since there are only three telecommunications firms in the Philippines. Among the public’s worries is the possible removal of the “Unli” promos of Sun Cellular, although PLDT has declared that it will retain the “Unli” promos.
Ernest Cu, president and CEO of Globe Telecom, reportedly called on the government to look into the impact of the deal in order to preserve the competitiveness of the industry. Cu claims that having an anti-trust law enacted in the Philippines would help curb monopolistic tendencies of some Philippine companies.
Globe is set to continue on its strategy to focus on the consumers and deliver good customer service to its subscribers and bolster its network’s and capacity to accommodate increasing mobile broadband consumption.
Is Globe’s call for a review of the deal between PLDT and Digitel justified? What do you think?