PLDT to focus on Rocket, won’t acquire another IT firm

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) has put on hold the acquisition of another information technology (IT) related company as it is focusing its resources on Rocket Internet AG of Germany.

PLDT chairman Manuel V. Pangilinan said the company would not likely acquire another foreign company within the short-term to focus on the partnership with the German Internet firm.

“Most likely not. I think we are focused on that investment in Rocket Internet and on certain joint ventures with Rocket Internet starting with the online payment assistance,” Pangilinan said.

The PLDT Group made its biggest foreign investment when it spent €333 million to acquire a 10 percent stake in Rocket Internet last Aug. 7.

The stake of PLDT in Rocket Internet was diluted to 6.6 percent after the German firm went public. However, the value of its investments has gone up to €419 million.

Pangilinan said the partnership with Rocket Internet would pave the way for the launch of three projects involving the use of the electronic payment system of Smart Communications Inc. via Smart e-Money.

“I think three of them will be launched within the month of November together with Rocket Internet using the Smart e-money platform,” he added.

The telco giant is represented in the nine-seat Supervisory Board of Rocket Internet by PLDT president and chief executive officer Napoleon Nazareno.

Pangilinan earlier said the investment in Rocket Internet is the start of a series of acquisition over the next few months as PLDT is looking at acquiring another internet company abroad.

 “We are looking at beyond Rocket but nothing definitive as of the moment. The next internet company that we might invest in would probably be more specialized,” the PLDT chief earlier said.

Orlando Vea, chief wireless adviser of Smart, said PLDT and Rocket Internet are presently developing a “proof of concept” that integrates Smart Money_s payment platform in selected Rocket e-commerce businesses in the Philippines.

Vea pointed out that the e-payment system including Zalora, EasyTaxi, and foodpanda would be launched in the Philippines within this month.

According to him, the services would cater to consumers who have no bank accounts and credit cards.

“We are starting this month. Most of the consumers are unbanked,” he added.

He revealed that the e-payment scheme would likewise be expanded in other parts of Asia.

“We will use this as proof of concept to expand to other Rocket Internet markets initially in Asia which includes Indonesia, Thailand, Vietnam, Pakistan Bangladesh Myanmar and some others,” Vea said.

PLDT and Rocket Internet are jointly developing mobile and online payment technologies and services in emerging markets.

Rocket Internet provides a platform for the rapid creation and scaling of consumer Internet businesses outside the US and China. It has more than 20,000 employees in its network of companies across over 100 countries, with aggregated revenues in excess of €700 million in 2013.