Globe Reacts as Telstra Enters Philippine Telco Industry

Sep 09, 2015

Talk of Telstra entering the Philippines has reached Globe; the leading telecommunications company in the Philippines. However, Globe defiantly shrugged off the news saying that the company had encountered major competitors in the past.

Australia’s largest telecommunications and media company, Telstra, confirmed plans to launch a mobile network targeting Southeast Asia by partnering with San Miguel Corporation, the biggest conglomerate in the Philippines.

The multi-million dollar joint venture to provide 4G services is said to be in accordance with the company’s plan of securing huge profits by 2020.

The Philippines currently has a strong mobile market dominated by Globe and the biggest telecommunications company in the country, PLDT. Globe Chief Executive, Ernest Cu, affirms that the success of the company is primarily due to focused customer-centric policies, which are similar to Telstra.

Globe Stands Firm in PH Telco

In an email to Fairfax Media, Mr. Cu believes that the company has unique strengths that make it stand out from competitors. He said, “While the entry of another competitor into the mature Philippines telco market is something we are closely looking at, Globe has had a long history of fighting a larger, well-resourced incumbent.” “We were a challenger brand for quite some time, and now we have emerged a leader,” he added.

These words were expected by Sachin Gupta, a Nomura research analyst who said that various telecommunication companies in the Philippines are monitoring and assessing Telstra’s venture in the country.

San Miguel is recognized as a major producer of food and beverage in the country, the company last attempted to enter the telco market in 2009 but was unsuccessful. The venture between Telstra and San Miguel combines their respective strong points of engineering expertise, a strong mobile spectrum, and highly complex market abilities. The latter is said to be on the process of hiring executives of telcos and preparing for the launching of the said services.

Telstra sees the Philippines as a profitable venue due to the demand for high-speed 4G services. The company has previously entered similar partnerships in other Asian countries such as Indonesia with great success and hopes to repeat the process.



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