MANILA, Philippines - San Miguel Corp. aims to launch its mobile telecommunications business next year, its top official said.
Speaking before top global CEOs and businessmen at the Forbes Global CEO Conference yesterday, SMC president Ramon S. Ang disclosed the conglomerate’s impending entry into the local mobile phone market.
“We’re building a mobile global company. We think we can switch on the network next year so I think there will be no more problems for those of you who are experiencing problems,” Ang said, drawing applause from the crowd.
Ang, however, did not give any update on the ongoing talks with Australian telecoms giant Telstra, but both parties have confirmed the negotiations for a possible telco venture in the Philippines.
Melbourne-headquartered Telstra, Australia’s biggest phone company, was earlier reported to have selected banks for its expansion program.
Ang earlier said there was a need for a third telco player to compete with the duopoly and provide better services.
He said consumers continue to look for better services.
“We are building a network that will provide better service and that will work. It’s not impossible to have three players in one country,” Ang said.
He said SMC’s telco venture would be both in the wired and wireless sector, with focus on mobile broadband.
Ang led the conglomerate’s move to diversify into other businesses outside its core business of beer and food.
“We had nowhere to grow. Our beer then had a 95 percent market share and what else can we do?” Ang said.
Ang said after the 2008 Asian currency crisis, he convinced other shareholders to allow the company to diversify.
“We took advantage of it…We invested into power generation. We own coal fired power plants, the 1,000 megawatt Sual plant in Pangasinan, a hydroplant in San Roque and a 1,200 MW natural gas fired plant. We went into oil refinery and petrochem business and gas stations and invested into tollways. We now have 70 percent of tollways in the Philippines and we are building a new airport now in Boracay,” Ang said.
For the Caticlan Airport in Boracay, Ang said the company is expanding the runway to expand bigger plans such as Airbus 321 which can accommodate flights from Boracay to anywhere within a five-hour range.
He said SMC is also building a metro railway from Manila to Bulacan as well as expanding its cement businessmen to 16 million tons annually from the current six million.
“Our dream is to provide better infrastructure, better products and a better place for our countrymen,” Ang said.
SMC hopes to bring its yearly consolidated revenues to $40 to $50 billion in the next five years from an estimated $20 billion at present.