Smart versus Globe minus Sun


The recent report regarding the share-swap deal of PLDT and Digitel could be bad news for cellular phone users. PLDT owns Smart Communications while Digitel owns Sun Cellular. This means PLDT now owns Smart and Sun with Globe as the only competition in the telecommunication industry.

With the deal, PLDT will be controlling 70% of the market and Globe the remaining 30%. I hope I am wrong, but this could mean goodbye to bucket plan packages and unlimited call and text promos.

Prior to this share-swap, Sun played the role of a villain against Smart and Globe in the price war. Sun became the alternative to so many consumers who were looking to save cost on calls and text messages. Hence, Smart and Globe had no choice but to offer low costing packages and promos also. This was good to the general public who benefited from the 3-way competition.

But all good things must come to an end somehow. Now, the competition is between Smart and Globe. With two main players only in the telco industry, they will have more pricing power. Their will be a stable marketplace for the two telcos which favors them. And we know what this means, higher cost for their services.

I love to be wrong on this one.

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