News : Telstra Backs Out of Philippines Wireless Joint Venture
Melbourne, Victoria, Australia, March 14, 2016 -- Telstra has cited the lack of an acceptable "risk-reward balance" as the reason for abandoning negotiations with Filipino provider San Miguel Corporation over an equity investment in a wireless joint venture in the Philippines.
Telstra said the two companies were "unable to reach commercial arrangements" over the joint venture, announced at the end of last year, to form a wireless provider.
According to Telstra CEO Andrew Penn, negotiations ceased over the weekend.
"Despite an enormous amount of effort and goodwill on all sides, we were simply unable to come to commercial arrangements that would have enabled us all to proceed," Penn said.
"While this opportunity is strategically attractive, and we have great respect for San Miguel Corporation and its president Mr Ang, it was obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved."
Telstra will, however, extend its technical network design, construction, consultancy, and support to San Miguel, and will also continue eyeing opportunities into Asian expansion.
Posted by Veronica Silva Cusi, news correspondent
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Published: Tuesday, March 15, 2016