The two major shareholders in the Philippines' Globe Telecom have no intention of giving up on the business despite the prospect of a duopoly.
The chairman of Ayala Corp toldABS-CBN News that the Ayala conglomerate, along with its partner SingTel, remain excited about Globe’s prospects in the Philippines, despite the much-hyped looming acquisition of third-largest carrier Sun by arch rival PLDT.
Chairman Jaime Augusto Zobel de Ayala said he saw no reason for the partnership between Ayala and SingTel to be disrupted, adding it would be foolish to exit the industry during such an ‘interesting’ time.
Zobel told the Malaya Business Insight the two firms enjoyed a ‘cohesive partnership’ and saw no need for a new investor, though market observers had speculated Globe might partner with upcoming fourth carrier San Miguel to increase competitiveness.
PLDT’s proposed acquisition is expected to give the company a 67% market share once completed. Globe is currently the Philippines’ number two carrier.
Globe last week announced a 16% increase in capital expenditure for the year, with more than a third of the sum going toward its mobile broadband business.
Both Globe and PLDT-owned Smart Communications went live over the weekend with 4G mobile broadband launches in various parts of the country.