Australia’s Telstra (ASX:TLS) has disclosed that it is in discussions with the Philippines’ largest conglomerate San Miguel Corporation (PSE:SMC) about setting up a mobile operator in the country.
Australia’s Telstra (ASX:TLS) has disclosed that it is in discussions with the Philippines’ largest conglomerate San Miguel Corporation (PSE:SMC) about setting up a mobile operator in the country.
In a statement, the Melbourne-based telco said it was considering an investment in a wireless joint venture in the Philippines and that financing was being sought in relation to the project.
Telstra added, however, that no agreements have been reached yet and there is no certainty that a JV will materialise.
The Philippines’ mobile market is currently a duopoly, with PLDT’s Smart and Singtel’s Globe being the country’s sole two nationwide network operators.
Telstra’s global enterprise and services business has already expanded into Asia. In April this year, it completed its US$697m acquisition of Asian data centre and undersea cable operator Pacnet, doubling its customer numbers across the continent.
A JV with San Miguel would mark its first consumer offering in Asia. San Miguel is the Philippines’ largest company and is active in a wide array of industries, from food and beverages to fuel and energy.
In July, the conglomerate bought controlling stakes in three local telecoms firms through subsidiary Vega Telecoms. It agreed to buy out the other shareholders in Liberty Telecoms Holdings (Philippines:LIB), a recently-restructured 4G player operating as Wi-Tribe; it indirectly acquired a 78.45% stake in analogue operator Extelcom; and it snapped up a controlling stake in a group called High Frequency Telecommunications.