Both companies failed to agree on commercial arrangements of a possible equity investment, The Australian reported.
Each company, however, stressed on continuing to pursue their individual plans of exploring business opportunities locally and in Asia.
Telstra chief executive Andrew Penn was quoted as saying, that “it was obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved.”
Telstra proposed to San Miguel last August that it is willing to invest up to $1 billion in a telco joint venture. Penn even later on criticized the “duopoly” in the Philippine telecoms industry, dominated by Globe Telecom Inc and PLDT as the country has one of the slowest mobile Internet speed.
Meanwhile, San Miguel president and COO Ramon Ang said they will go ahead with the company’s telco venture as scheduled utilizing the 700 Mhz band alotted to it by the National Telecommunications Commission (NTC).
Ang told the Inquirer that Telstra continues to offer technical work design and construction consultancy support for the physical infrastructure for San Miguel’s wireless service.
San Miguel’s network is nearing completion with cell sites mostly deployed in Metro Manila and in provinces immediately to the north and south of the National Capital Region, Inquirer added.
Ang noted San Miguel’s entry into the telco industry will benefit more consumers from better and cheaper service.
Responding to the latest development, Philippine listed mobile carrier Globe Telecoms maintained its call on the NTC to distribute the 700 Mhz for further and immediate Internet development in the country.
“This new development about Telstra ending its plan of entering the Philippine market doesn’t change anything as regards to our business direction. The more serious concern is why SMC is being allowed to hold on to the entire 700 Mhz band,” Globe said in its statement.
“We call on the NTC to immediately distribute the 700 Mhz for fast deployment of high-capacity LTE based wireless and fixed broadband that would benefit the entire country.”
Globe highlighted the Philippines is one of two remaining countries in Asia Pacific with pending issues that prevent the utilization of the 700 Mhz frequency.