Negotiations between conglomerate San Miguel Corp. (SMC) and Australian company Telstra Corp. Ltd. over a planned telecommunications joint venture were scrapped after the failure of both companies to agree on an equity investment.
"Both SMC and Telstra worked hard to come up with an acceptable resolution to some issues. However, we agreed we can no longer continue with the talks. I believe this is best for all parties," Ramon S. Ang, SMC president and COO, said in an emailed statement on Monday.
Telstra, in October 2015, announced it will seize the opportunity to capture the Philippine market with an investment of up to $1 billion.
Despite the collapsed talks, SMC cleared that it will still proceed to switch on its telecommunications network as scheduled.
"SMC’s entry in the telecom market will definitely be a game changer. When we launch, consumers will benefit from better, cheaper service,” Ang said.
According to Ang, SMC is still open to other joint venture opportunities for its planned telco business.
"We are not rushing. What’s important is that we give Filipinos a third and better choice that they have been deprived of for the longest time.”
Telstra has also offered to continue technical work design and construction consultancy support, SMC noted. —KG, GMA News