PLDT sees tough competition from Telstra

Philippine Long Distance Telephone Company (PLDT) expects the entry of Australia’s biggest telecommunications company to bring in tougher competition for the incumbent service providers. 

“Clearly, they will not come in without a fanfare and, of course, there is the novelty of a new entrant so some people will be tempted to try their service,” PLDT Chairman Manny Pangilinan told reporters on Tuesday.

“We just have to be ready and we will be ready for them,” Pangilinan said.

Australia's Telstra Corp. Ltd. is in talks for a joint venture with San Miguel Corp., the largest diversified conglomerate in the Philippines.

The foreign telco is banking on the “lousy” mobile service offered by incumbent operators PLDT and Globe Telecom Inc. to get a slice of the Philippine telecommunications market.

Telstra may have the advantage in offering high-speed wireless communications by launching the latest cellular technology at the onset.

"As to when [the fifth generation technology] does become available and commercially feasible to launch… there is no reason that the incumbents cannot do it,” Pangilinan said.

PLDT earmarked a record P43 billion in capital expenditure this year, partly to improve third and fourth generation access networks and increase fiber reach and capacity and expand data center capacity.

PLDT reported a 16.75 percent decline in net income at P6.61 billion during the third quarter of the year from P7.94 billion a year earlier on the back of higher costs and expenses. – VS, GMA News