Sun Cellular Smart PLDT Merger Details

Top officials of Manny-V-Pangilinan-led PLDT and Gokongwei-owned JG Summit Inc. had recently signed an agreement 'under which PLDT will acquire JG Summit's shareholdings and other economic interests in Digitel', parent company of Sun Cellular, in exchange for around 12.8% share of PLDT.

PLDT - parent company of Smart Communications - will get a 51.55% stake of Digitel but the MVP-company will also make mandatory tender offer for remaining Digitel common shares held by minority shareholders. The tender offer will be priced at Php 1.60 per share, to be paid in the form of PLDT shares issued at Php 2,500 each.

So what will happen to Sun Cellular after the acquisition?

Supposedly, this should result to an 'improved' Sun Cellular.

Quoting PLDT President and CEO Napoleon L. Nazareno,

"Our intention is to maintain Sun's current offers and further improve them. One clear opportunity is mobile broadband. Leveraging the combined networks of PLDT, Smart and Sun, we plan to expand the reach and raise the quality of mobile broadband services for Sun subscribers. This is in line with our Internet for All advocacy."

Source: PLDT

So now that Smart has practically gobbled up Sun, Filipinos are left with only two mobile giants fighting it out for market dominance. Which side are you on? Globe or Smart?

9 comments:

  1. Just hope it stays separate despite the merger. I really hate Smart's idiotic service and Globe's slow broadband speeds. And I'd really hate to lose my unlimited text and call service Sun-to-Sun. Not a good time for me.

    ReplyDelete
  2. To answer your question TP, BOTH. I have been on both Globe and Smart since 2007, so this does not really affect me.

    But here in Mindanao, Sun Cellular has been gaining ground and has covered the island with cellsites. It has been very aggressive with its unli promo to the point that a lot of people I know from either Smart and Globe has been switching to Sun as early as September last year.

    ReplyDelete
  3. This merger is bad. I don't know what's up with the Gokongwei's and they immediately gave in to PLDT in an eye blink. They really are not aware how BIG Sun Cellular could be in the future if only they continue their low-priced offerings that they could potentially outnumber Globe's current subscriber count in the future as Sun continue to expand. What's more, a lot of business establishments just recently switched to Sun after discovering that Sun's service quality this year is already on par with the two giants. Businesses like www.Express, SynerMaxx, Bounty Fresh Chicken, Claret School, Fruit Magic, Waffle Time, Summit Media, Tell U Pay, LBC, SmartMatic, St Luke's Hospital, Chong Hua Hospital and Cebu Doctors University Hospital all are relying on Sun largely because of the savings. Now after this deal, how would their owners react?

    If the Gokongwei's really thought about the deal 'seriously' (as how they describe it) before they decide, then I don't think they would even launch the brand called "SUN Business" which targets corporate clients. If I remember it right, they launched the brand just last 2010. Now that's what they call serious decision-making? It's more like a rushed decision for me that usually end up in regrets.

    I just hope the NTC would NEVER APPROVE this deal.

    ReplyDelete
  4. it's so bad, smart signal is good but their management is bad, here in cebu, smart requests sub-dealers sign up contracts that exclusive only for smart, that means if you are exclusive for smart then you are NOT allowed to sell any products related to globe and sun, smart even ask every sub-dealer needs to have own collectors, those expenses really can't be covered by the 2% income from their loadwallet sales.....here in cebu many stores are persecuted by smart for their business!

    ReplyDelete
  5. It would hurt the competition among telecommunication networks... other countries like US don't allow this kind of acquisition without court hearing because it would likely to result in monopolistic practices. I really don't know why philippine government allow this to happen easily but if it this acquisition materializes, i hope sun will maintain to deliver good customer experience they had instead of adopting smart telco standards.
    In my own opinion, globe and sun merger would be okay for me.

    I have a great broadband experience with sun, i hope this kind of acquisition will not make their network crappy like smart. I'm a globe subscriber but sun broadband rocks.. :)

    ReplyDelete
  6. Some might not seem to notice but PLDT/Smart is actually targeting some other factors (not just 2G services).

    While some are haunted by the perceived end of unlimited calls and texts services, MVP reasoned out that "one clear opportunity is broadband". So I came up with an idea that they might phase out SUN Broadband Wireless in favor of Smart Bro (it's hard to think that it will be the other way around) and in turn could increase the postpaid Monthly Service Fee for Smart Bro (and well, Globe might also decide to raise the MSF for Globe Tattoo Postpaid since SUN is no longer around to pressure them with the price). Remember back then when SUN still has not introduced SUN Broadband Wireless? We all knew how HIGH the prices are for an unlimited monthly plan for wireless broadband right? But let's face it, when SUN entered into the wireless broadband scene, they once again changed the way broadband should be priced and then the two giants once again are forced to compete with lower-priced (than their usual pricing) albeit much expensive when compared to SUN's offerings.

    The idea here is simple. Everytime SUN enters into a certain product/service offering, it usually ends up pressuring the two giants in the form of a price war.

    If this will continue, before long SUN might start to theaten the number two player and could go head on with the incumbent.

    So before that would happen, PLDT decided to buy Digitel SO THAT THEIR PROFITS WILL NO LONGER BE THREATENED IN THE FUTURE.

    Now this is a sad news FOR EVERY CONSUMER indeed and not just for SUN subscribers. Let's all face it that without SUN, the two giants will keep on introducing new OVERPRICED services.

    Once again, these are just my opinion.

    ReplyDelete
  7. i live in Binan Laguna we have globe,smart and sun,we are using sun for family's contact and it gives good signal before and smart have the worst signal in our place, but now after the merger the good signal of sun becomes worst like the signal of smart before you need to go outside to have good communication signal,i hope that they will put back the good signal of sun and improve the signal of smart.

    ReplyDelete
  8. What we are not being told is: new Internet Texting reduces infra costs by 98%, so Smarts $40m per day costs reduce to less than $1m...if competition is allowed to continue then Filipinos would effectively end up with free 1p per day local and international unli. However if this takeover is allowed to go through all savings will be passed to PLDT's Indonesian parent and no benefits will pass through to Filipino and the Philippines will continue to be one of the most expensive locations to communicate. When Pangalinan cries poor you know its the real Pinoy that suffers. How can this weak President let this happen, because that's what Pangalinan is betting on.

    ReplyDelete

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