Philippine Telegraph & Telephone Corp. (PT&T), a listed fixed-line broadband operator, is charting fresh growth initiatives after being acquired by a new investor group on Friday.
Those plans include making further inroads in the broadband market in Metro Manila and eventually in the provinces, and possibly taking on partners moving forward, PT&T chief operating officer and treasurer Miguel Bitanga told the Inquirer.
“Everyone knows there is room for a new player, there is room for improvement [in telecommunications],” he said.
“We see both an opportunity and a challenge,” he added.
PT&T disclosed on Friday that private investment firm Menlo Capital Corp. acquired a 70-percent stake in the telco after buying out previous owner Republic Telecommunications Holdings Inc. for an undisclosed amount.
The buy-in deal was described as a 50-50 venture between businessmen Salvador Zamora II and Benjamin Bitanga, a source said.
Zamora was named chair while Benjamin Bitanga was appointed CEO, replacing Jose Luis Santiago. Lucio Tan Jr. is one of Menlo’s shareholders, although the namesake son of taipan Lucio Tan was said to have no “direct” involvement in the transaction.
Bitanga said the immediate focus was on laying down more fiber lines and building its customer base, which he described as “significant” and mainly large corporate and business accounts.
According to its website, PT&T offers dedicated or shared internet access service via fiber or wireless, with speeds of up to 1 Gbps (gigabits per second) to the end user. It maintains about 500 kilometers of redundant fiber optic routes throughout Metro Manila and nearby areas.
“We would like to grow, potentially partnering with other groups,” Bitanga said. He noted they were open to both local and foreign partners.
The entry of Menlo also marks a fresh chapter for PT&T and its shareholders.
PT&T was established in 1962 and was once considered a rival of PLDT Inc.
PT&T debuted on the Philippine Stock Exchange in 1990, however, it has not been traded since December 2004, when it went under voluntary trading suspension since it could not meet the reportorial requirements of PSE.
The entry of Menlo is expected to pave the way for trading to resume, a source said.