Liberty to launch Internet service

MANILA, Philippines–Liberty Telecoms Holdings Inc., the telecom venture of San Miguel Corp. and Qatar Telecom, is planning to introduce its mobile Internet service by early 2016, company president Ramon S. Ang said on Tuesday.

Ang earlier cited the potential growth for mobile broadband, given that it was one of the fastest-growing segments in the industry, driven partly by the availability of inexpensive smart phones from China.

“We are in the process of introducing a mobile broadband service and we hope to provide each and everyone a very good service starting January next year,” Ang said during a business forum organized by Euromoney.

The move comes as Liberty has been in the process of restructuring its debt obligations, in line with a plan to exit corporate rehabilitation by 2016.

Liberty’s board last year approved the issuance of 431.2 million of “unlisted preferred shares” to SMC’s Vega Telecom’s Inc., 287.32 million shares to Qtel West Bay Holdings S.P.C. and 161.48 million shares to White Dawn Solution Holdings Inc. The issue price was set at P1 per share.

“The corporation’s existing liabilities to the said shareholders should be the consideration for the issuance of shares,” Liberty said in its filing.

It said the preferred shares are voting, participating, nonredeemable and would have preference over common shares in case the company goes out of business.