Migs Mobile Network

I got intrigued with some of the not so tech news lately, specifically with the PLDT-Meralco and San Miguel-Meralco news. I was wondering why these two big companies would want a stake over Meralco. maybe they want to lower their power cost?

It was during my vacation that i made some research about it. And it was only then that i understood what was happening. Some of you might already know this. But I’m sure that most of my readers and to be readers would only get the big picture after reading this.

This will be a three part post with this first one explaining the background of the two deals and next one would be about how broadband internet can be delivered through electric cables and the third installment would give you the pros and cons of this system.

Ok. so lets start the current rolling!

Last year, it was reported that San Miguel Corporation was able to grab a seat in the Board of Meralco. Story here.

Then, PLDT through PLDT Beneficial Trust Fund and New Gallant Limited (a holding firm also owned by PLDT), was also able to take one seat in the Meralco board. Story here.

Both said that they don’t want to control Meralco and just wants to have a share in it. Well, maybe for now. But let’s see the news after 10 years perhaps?

Based on the news and some quick searches, it shows that Meralco can be on the “tech side”.

San Miguel Corporation (SMC) has partnered with Qatar Telecommnications Group (Qtel).  Qtel acquired 27% of  Libert Telecoms in May 2008 through subsidiary Wi-Tribe Asia Ltd. SMC is eyeing a bigger stake in Liberty from the current 20% to 60%.

SMC will also be acquiring Express Telecommunications Co. (Extelcom) and will merge Libtel and Extelcom. Most likely, LibTel will be the one to acquire Extelcom to boost its presence in the telco industry. A closer look at these companies reveals that:

• LibTel was incorporated on 14 January 1994, primarily to engage in real and personal property business, and deal in stocks, bonds and other securities. It was envisioned to be the holding company for Liberty Broadcasting Network and Skyphone Logistics, the marketing and logistics partner of Liberty Broadcasting. The company has a government franchise approved in 1956 and valid until 2014 to operate radio broadcasting stations and television stations for international and domestic communications. In April 2005, the management of Liberty decided to suspend its business operations due to lack of capital required to operate and grow the business. Four months later, Liberty filed a petition for corporate rehabilitation. The court issued a stay order on all the company’s outstanding liabilities as of 15 August 2005 which also prevented creditors from foreclosing on its assets

• Extelcom is a joint venture of Marifil Holdings owned by Bayan Telecommunications Holdings Corp, (BayanTel) the telecommunications arm of Benpres Holdings Corp. (Benpres), Scott Sproule Cellular and Digital Excel Development, and Mayon Holdings, Inc. whose shareholders also own GMA Network. It already has a Certificate of Public Convenience and Necessity (CPCN) for the operation of CMTS and has been assigned the following frequencies: 835-845 MHz, 880-890 MHz, 1720-1725 MHz, and 1815-1820 MHz.

• Qtel is the exclusive telecommunications provider in Qatar.

In short, the SMC-Qtel partnership will use LibTel for their telecom products and services. In fact, “LibTel will be launching their products and services in the middle of 2009. It will be operating under Liberty Network Inc. Plus they plan to roll out their VoIP services by 2011 (source).”

“Liberty Telecom is hoping to provide high bandwidth (1Mbps+) for upper and middle class households and SMEs, 512 Mbps service for the lower to middle class, and 1 Mbps nomadic service for high-end mobile users (source).”

So now, SMC can enter the arena being played by the 3 giant telcos – PLDT (Smart), Globe, Digitel (Sun cellular).

As we all know, PLDT is one of the big 3 players in the telco industry however, it is eyeing to get more telcos under its roof. “PLDT earlier acquired Philcom Corp., a local telephone firm serving southern Philippines, shelling out P340 million to cover Philcom’s liabilities held by Premier Global Resources Corp. The debt agreement was inked last Jan. 2. Philcom serves Daval Oriental, Davao del Norte, Misamis Oriental, Surigao del Norte, Surigao del Sur, Agusan del Norte, Agusan del Sur, Bukidnon, Basilan and Camiguin. (source)”

With all these acquisitions and mergers and new players, what can it do to normal users like us? Well, Globe and PLDT-Smart will not only have to battle it with Digitel-Sun, but also with this new comer. SMC-Libtel is expected to provide more choices for telecoms products and services. It may be with the likes of Digitel-Sun, meaning, they provide cheap products and services. We’ll may hear another unlimited texting service, or unlimited calls.  Cheaper broadband services will also be one of the services that will surely be offered by LibTel. And if Globe and Smart still wants to dominate, they SHOULD also bring the prices of their products and services down! And for sure, Digitel-SUN won’t be left behind.  That’s why they are now rolling out their Sun Broadband Wireless service. We’ll see it being offered outside of Metro Manila starting third quarter of 2009.  Meanwhile, LibTel will likely be offering their Broadband services by 2010.

On my next post, I’ll talk about how SMC, PLDT, and Meralco “completes ” puzzle that will put together broadband on electric/power lines.