PLDT: Sun Cellular unli packages to stay

CEBU, Philippines - Philippine Long Distance Company (PLDT) vows to continue the unlimited text package of Sun Cellular, even after the telecom giant completes its investment in Digitel Inc.

In a statement, PLDT chief executive officer and president Napoleon L. Nazareno assured Sun Cellular subscribers that the current offers will be maintained, in fact, PLDT intends to improve all the packages currently offered by Sun Cellular network.

“Our intention is to maintain Sun’s current offers and further improve them. One clear opportunity is mobile broadband,” Nazareno said.

“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,” Nazareno added.

Some quarters have raised concerns that PLDT's investment into Digitel would lead to the end of Sun's unlimited (texts/calls) offers.

“That's not going to happen. There is a market for unli services and we intend to be the best in serving that market,” Nazareno assured subscribers.

According to Nazareno, over the next three months, PLDT shall study further Digitel’s operations and networks.

“This will enable us to draw up specific plans in order to realize the synergies between PLDT, Smart and Digitel,” he said.

Earlier this week, top officials of PLDT and JG Summit Inc. signed an agreement under which PLDT will acquire JG Summit's shareholdings and other economic interests in Digitel for the sum of P69.2 billion.

PLDT will also undertake a mandatory tender offer for the remaining common shares of Digitel held by minority shareholders. This could raise the total transaction price up to P74.1 billion.

Payment would be done in the form of PLDT shares valued at P2,500 each.

To complete the transaction, PLDT needs to obtain regulatory as well as shareholder approvals in a process that it hopes to finish in the next three months.

Meanwhile, aside from its significant investments in the acquisition of Digitel Inc., the mother company of Sun Cellular, PLDT also announced earlier that it will be spending a total of P67 billion in the next two years, to improve its existing infrastructure and meet the sophisticated demand for technology connections in both corporate and consumer markets.

PLDT chairman Manuel V. Pangilinan said the company, will pour its capital expenditure (capex) this year and the next, on three important components which include technical requirement on the modernization of wireless network, commercial objective requirement (strengthening business intelligence), and upgrade of its ICT (Information Technology and Communication) support system.

Pangilinan said with the said capex, Cebu and the rest of Visayas will be able to benefit in the upgrading of its telecommunication and technology systems, specifically in the modernization of wireless network, DSL, and broadband facilities.

“We expect our capital expenditures for the two year period of 2011-2012 to reach P67 billion but will settle down to levels comparable with those realized in the years immediately before 2011. The incremental investments will be funded by debt, give our favorable debt profile and strong cash flows,” said Pangilinan.