PLDT, Globe vow to improve Internet service in a year

Posted on June 02, 2016 09:18:00 PM

PHILIPPINE LONG DISTANCE Telephone Co. (PLDT) and Globe Telecom, Inc. on Thursday vowed to deliver improved Internet service to their customers in a year. This comes a day after the National Telecommunications Commission (NTC) warned the two telco giants to boost Internet speeds within a year or it will revoke its approval for them to take over the 700-megahertz (MHz) spectrum owned by San Miguel Corp. (SMC).

“Yes, we heard that. I think we could deliver. I think we’ll be able to see improvements immediately in certain spectrums. But we need a bit more time, between three to six months for the 700 MHz,” PLDT President, Chairman and Chief Executive Officer Manuel V. Pangilinan told reporters.

“When we entered into this transaction, we already made a commitment to progressively improve mobile internet services to our customers over a period of 12 months. Ultimately, this transaction was really meant to accelerate improvements in mobile [I]nternet service by using idle frequencies for public good,” Globe Senior Vice-President for Corporate Communications Ma. Yolanda C. Crisanto said in a mobile text message.

PLDT and Globe on Monday announced it is jointly acquiring SMC’s telecommunications business for P69.1 billion. Under the deal, they will acquire the coveted 700-MHz spectrum, which is able to penetrate walls and useful for providing in-building coverage.

“We gave them one year to improve the service,” NTC Deputy Commissioner Edgardo R. Cabarios told Reuters by telephone on Thursday. “The idea there is for us to close the gap because we are far behind our neighbors like Malaysia and Singapore.”

The Philippines has one of the slowest Internet services in Asia, placing 21st out of 22 countries, according to analytics firm Ookla.

S&P AFFIRMS PLDT RATINGS
Meanwhile, S&P Global Ratings said it affirmed on PLDT its ‘BBB+’ long-term corporate credit rating and its ’axA+’ long-term ASEAN regional scale rating. It also affirmed its ‘BBB+’ long-term issue rating on PLDT’s senior unsecured notes.

“We affirmed the ratings because we expect that PLDT’s capital structure will not materially deteriorate despite its high spending on spectrum acquisitions,”

S&P Global Ratings credit analyst Wei Kiat Ng was quoted as saying in a report.

PLDT’s acquisition of the 700-MHz spectrum is expected to help consolidate its market position in the local industry, since the company can “expand data services, improve indoor coverage, and enable faster services rollout nationwide.”

“The stable outlook on PLDT for the next 24 months reflects our view that the growth in the company’s broadband and data businesses would continue to offset gradually eroding revenue from traditional voice and SMS operations,” Mr. Ng said.

S&P said its outlook is tied to its expectation PLDT will continue to generate free operating cash flows over the next two years, and its acquisition appetite will remain moderate.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. —with Reuters and T.M.B.Umali

Source: www.bworldonline.com