Wednesday, March 30, 2011

PLDT acquired Sun Cellular

When the news about Jollibee buying out Mang Inasal spewed out into the open, I just give an indifferent causal shrug. But with the acquisition of Sun Cellular from PLDT, it sends mixed discomfort especially from the consumer perspective.


Free enterprise has always been good economic standpoint and multilateral benefits. With the acquisition, one will expect strategic price compromise from the remaining competition. There'd be less, if not an absolute absence, of price wars from telco. There's be no more struggles to keep up their a better service portfolio since the buyout spells huge market dominance.


For those who shifted from Smart to Sun, this would be avoiding a hit from the hammer but eventually hitting it to your head in the process. That is exactly the reason why I bought a Sun Broadband USB Stick because I am not really satisfied with the service and speed of the Smart Broadband USB.


With the combined consumer-base strengths of Sun and PLDT, they now occupy 70% of the entire market share. The apothegm that says "if you can't beat them, join them" must have been the driving force that led the Sun Cellular to sell their stocks to PLDT.


Now, speaking of acquisition as an industry trend, do I have to expect a possible future similarity on ABS-CBN buying ABC 5?

7 comments:

  1. *Sigh* I was worried about the same thing as well.

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  2. @Bea: there is a marketing guru who bets on the law of duality. maybe this is the ultimate fate of all things in economic sphere. you know, coke vs pepsi, close up vs colgate, PAL vs cebu pac(especially that PAL already acquired airphils), intel vs amd, mac vs pc.

    i, for one, have been doing astrophysics lecture of almost the same duality topic to astronomy students, electrons vs protons, hadrons vs leptons, particle vs antiparticle, dark matter vs dar energy(cosmic force with negative pressure), even our sun belonged a binary star system when it was at its infancy.

    what i'm saying is that, maybe ganito talaga, mauuwi talaga tayo sa TRUE or FALSE instead of multiple choice.

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  3. Grabe nasa Inquirer kanina ito. Next thing you know maging monopoly na... nakakatakot!
    xoxo
    MrsM

    ReplyDelete
  4. Grabe kakatakot next nyan monopoly na!
    xoxo
    MrsM

    ReplyDelete
  5. @Michelle: yes, what i fear most is the internet cartel. they will have full control of the bandwidth and the business that comes along with it.

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  6. I highly doubt that ABS CBN will acquire ABC 5. ABC 5 is currently powered by MVP with 4 Billion pesos to waste in the next yrs.

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  7. @Anonymous: i don't think it is impossible for ABS-CBN, their Php34billion asset base is more than double of the ABC 5's Php4billion.

    ReplyDelete

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