Digital Telecommunications Philippines
- For the company in Venezuela, see Corporación Digitel, C.A..
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| Type | Public (PSE: DGTL) |
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| Industry | Communications Services |
| Founded | Manila, Philippines (1987) |
| Headquarters | Quezon City, Philippines |
| Key people | Manuel V. Pangilinan, Chairman Orland Vea, President and CEO[1] |
| Products | Broadband Services Cellular Telephony Fixed-Line Telephony Information Technology Services |
| Revenue | P1.784 billion PHP ( 14%) (2004) [1] |
| Employees | 3,763 |
| Website | www.digitel.ph |
Digital Telecommunications Phils., Inc. Digital Telecommunications Philippines, Inc. (DIGITEL) is one of the largest providers of wirelines in the Philippines in terms of working lines. Established in August 1987, Digitel was then owned by JG Summit Holdings Incorporated, one of the Philippines’ most diversified conglomerates. DIGITEL telephone lines are available in 281 towns and cities throughout Luzon through 694 regional and local exchanges.
Digitel Mobile Philippines, Inc. (DMPI) on the other hand is a wholly-owned subsidiary of Digitel, and is one of the Philippines’ leading mobile telecommunications companies. It was established by DIGITEL in September 2001 to provide wireless public and private telecommunications services.
Offering a wide range of service innovations for mobile telephony from voice, messaging and international roaming services, to wireless broadband and value-added services for consumers and businesses alike, Sun Cellular has received accolades over the years with awards such as the Most Promising Telecom Service Provider in Asia Pacific award in the 2009 Frost & Sullivan ICT Award in Singapore. In the same year, the brand also received the Agora Marketing Company of the Year in 2009 Award for its excellence in pioneering intra-network unlimited services and revolutionizing the country’s telecommunications industry practices. In 2011, Sun Cellular bagged the Philippines Mobile Service Provider of the Year from the Frost & Sullivan Asia Pacific Best Practices Awards in Singapore.
In October 2011, PLDT acquired Digitel from JG Summit holdings, vowing to continue providing Digitel’s customers best value in terms of price, quality, and range of products and services. PLDT’s acquisition of Digitel ensured that Digitel remains in good hands, as Digitel stands to benefit from PLDT’s extensive infrastructure and diverse service offerings.
With the acquisition, DIGITEL continues to be one of the largest providers of fixed line and mobile services in the Philippines servicing the Island of Luzon. In 2011, Digitel won the Philippines Telecom Service Provider of the Year in the Frost & Sullivan Asia Pacific Best Practices Awards in Singapore.
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[edit] History
Digital Telecommunications Phils., Inc. was established in October 1987 and commenced commercial operations in January 1992.
In 1993, Digitel was awarded a 30-year exclusive contract by the Department of Transportation and Communications (DOTC) to manage, operate, develop and rehabilitate certain telecommunications systems owned by the DOTC (collectively, the "DOTC System") and which are located in the provincial areas of Luzon under a Facilities Management Agreement (FMA). The FMA also provided for its conversion into a lease contract under certain terms and conditions agreed upon by both parties.
In accordance with the provisions of the FMA, Digitel and DOTC agreed to amend and convert the FMA into a Financial Lease Agreement (FLA). Under the FLA, Digitel was granted the exclusive right to lease, manage, maintain, operate, develop and eventually own the said DOTC facilities.
In February 1994, Digitel was granted a national franchise to provide domestic and international telecommunications services throughout the Philippines. In September 1994, Digitel was granted by the National Telecommunications Commission (NTC) a provisional authority to operate an international gateway facility (IGF). A provisional authority was also secured from the NTC in January 1995 to install, operate, maintain and develop telecommunications facilities in Regions 1 to 5 including the facilities currently leased from DOTC.
On August 7, 2000, Digitel was granted by the NTC a Provisional Authority (PA), authorizing it to construct, install, operate and maintain a Nationwide Cellular Mobile Telephone System (CMTS) using Global System for Mobile (GSM) and/or Code Division Multiple Access (CDMA) technology. Consequently, Digitel has been building a high-powered performance GSM/1800 network with a suite of applications and services.
On December 11, 2002, the President of the Philippines, Gloria Macapagal-Arroyo signed into law, Republic Act No. 9180 granting Digitel Mobile Philippines Inc. (DMPI), a wholly owned subsidiary of Digitel, a franchise to construct, install, establish, operate and maintain wire and/or wireless telecommunications system throughout the Philippines.
In March 2003, DMPI commercially launched its wireless mobile services under the Sun Cellular brand. It pioneered the 24/7 Call & Text Unlimited in October 2004.
On March 2011, Philippine Long Distance Telephone also called PLDT acquired 51.55% of Digitel's shares for 69.2 Billion Pesos. Because of this, the shares of Digitel and JG Summit in the PSE surges while PLDT's shares remained unchanged. In the deal, JG Summit will have a 12% share in PLDT.[2][3][4]
On October 26, 2011, NTC finalize the PLDT-Digitel deal. The majority holder of the company is the PLDT. As a result Manuel Pangilinan is the new Chairman of Digitel.
[edit] Subsidiaries
Digitel is divided into the following subsidiaries:
- Digitel Capital Philippines Ltd
- Digitel Information Technology Services
- Digitel Mobile Philippines (Sun Cellular)
[edit] Products
Digitel's fixed line services are offered under the MANGO, Choice, and DigiFonePal brands. Its cellular service is sold under the Sun Cellular brand, while its broadband Internet services are sold under the MANGO and NetVantage DSL brands. They also offers bundled services like a combined DSL and landline connection.
[edit] Ownership
The old ownership
- JG Summit Holdings: 47.45%
- PCD Nominee Corporation: 18.24% (12.69% Filipino, 5.55% foreign)
- AB Capital Investment Corporation: 12.51%
- Digitel executives: 1.21%
- Public stock: 20%
New Ownership
- PLDT: 51.55%
- Remaining Investors: 48.45%
[edit] Competition
Digitel's main competitors in the fixed-line and mobile markets are PLDT (PLDT subsidiary Smart Communications in the mobile market) and Globe Telecom.
[edit] PLDT buys Digitel
The Philippine Long Distance Telephone Company (PLDT) announced that it has completed the acquisition of Digital Telecommunications Philippines (“Digitel”) (PSE:DGTL) from JG Summit Holdings, Inc. (“JGS”) (PSE:JGS). PLDT now owns 51.55 percent equity stake of Digitel. Digitel has a hundred percent stake in Digitel Mobile Philippines, Inc., whose brand name is Sun Cellular.
PLDT will announce a tender offer for all Digitel common stock at the P1.60 per Digital share, and offered either PLDT shares at P2,500 per share of cash, at the option of Digitel Shareholders. Assuming all of Digitel minority owners agree, the total transaction consideration would be PHP74.1 billion.
[edit] References
- http://propinoy.net/2011/03/29/pldt-acquires-sun-cellular/ PLDT acquires Sun Cellular
[edit] External links
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