San Miguel Corp. to enter telecoms market via broadband

MANILA, Philippines - San Miguel Corp.’s entry into the fiercely competitive Philippine telecommunications market will be made via a new product that hopes to capitalize on the growing market for broadband.

Liberty Broadcasting Network Inc. (LBNI), a subsidiary of SMC, and the Qatar Telecom (Qtel) Group have partnered for the offering of Wi-Tribe, which utilizes 4G (fourth generation of mobile communications technology).

The local broadband industry is currently dominated by major telecommunications companies that include the Philippine Long Distance Telephone Co. (PLDT) group, Globe Telecom, Digitel and Bayan Telecommunications (Bayan).

As the mobile telephone industry is nearing saturation point, with a cellular penetration rate of over 80 percent, telcos are now shifting investments and focus towards the broadband sector, which in the past few years has been experiencing exponential growth both in terms of revenues and subscriber base.

SMC acquired last year 32.7 percent of Liberty Holdings for P1.88 billion through its wholly owned unit Vega Telecom. There are plans by the country’s biggest food and beverage conglomerate, which has diversified into other sectors including infrastructure and power, to increase its stake in Liberty.

In its website, Wi-Tribe said 4G is the preferred broadband technology worldwide that gives richer, pleasurable Internet experience.

“Wi-Tribe uses 4G because it is the future of broadband the entire world is moving towards. With 4G, Wi-Tribe delivers wired speeds without the wires. It is completely portable so you can enjoy it in your office, your favorite coffee shop, or your favorite hang-out. Just plug it and go online. It is that simple,” it said.

It added that its goal is to deliver innovative and reliable wireless broadband products, services and content to consumers and businesses across the country.

LBNI is headed by Anastacio Martirez, the former chief marketing officer of leading mobile phone firm Smart Communications.

The Wi-Tribe brand, it noted, is a growing global presence driven by the objective of enhancing online access in emerging markets in the Middle East, Asia and Africa. It launched its broadband service in Jordan in 2008 and in Pakistan in 2009.

“With the Philippines’ launch in 2010, Wi-Tribe will welcome even more subscribers to its growing global tribe,” it said.

It also pointed out that SMC and Qtel Group’s partnership in LBNI is committed to bringing world-class multimedia products and a full, rich range of service and content in voice, instant message, and interactive gaming.

The product is being offered at a rate of P998 per month, which will include a free Wi-Tribe Boom 4G broadband modem. The modems are initially being made available through select SMC and Petron outlets.

The company said 4G is the class of technologies that delivers high-speed broadband and multimedia services and applications. In contrast, 3G (third generation) is voice technology that is being used for some Internet applications like small screen applications and casual surfing.

It emphasized that 4G is broadband that delivers true wired speeds without wires, is faster because it has more bandwidth, is completely portable, is three times faster than 3G technology, and is the preferred broadband technology that will give a richer Internet experience.