Boost seen for telco sector

BATTLE LINES have been redrawn in the country’s telecommunications sector, analysts yesterday said, with a takeover deal seen as having injected new life into a price-war hit industry.

Shares of the top two players soared after Tuesday’s announcement that Philippine Long Distance Telephone Co. (PLDT) was taking over third-ranked Digital Telecommunications Philippines, Inc. (Digitel), essentially leaving the market to the dominant telco and rival Globe Telecom, Inc.

“PLDT killed a competitor in a deal that basically injected new life into the Philippine telecom industry,” said Jose Vistan, research head at AB Capital Securities.

“With less players, we will likely see more pricing power for both PLDT and Globe,” Mr. Vistan said.

Read more at Business World

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