Digital Telecommunications Philippines
Overview
 
Digital Telecommunications Phils., Inc. , commonly known as Digitel, is the second-largest fixed-line and the third-largest mobile telecommunication
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...

s company in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

. It is also the company that owns Sun Cellular
Sun Cellular
Digitel Mobile Philippines, Inc., is a mobile telecommunication service provider in the Philippines doing business as Sun Cellular. The company is a wholly owned subsidiary of Digital Telecommunications Philippines, or Digitel. Digitel is in turn owned by the JG Summit Group with a minority stake...

, the Philippines's fastest-growing mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...

 service.

The company is owned by JG Summit Holdings
JG Summit Holdings
JG Summit Holdings, Inc is one of the largest conglomerates in the Philippines with business interests in air transportation, banking, food manufacturing, hotels, petrochemicals, power generation, publishing, real estate and property development, and telecommunications...

, one of the country's largest conglomerates.

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).
Encyclopedia
Digital Telecommunications Phils., Inc. , commonly known as Digitel, is the second-largest fixed-line and the third-largest mobile telecommunication
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...

s company in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

. It is also the company that owns Sun Cellular
Sun Cellular
Digitel Mobile Philippines, Inc., is a mobile telecommunication service provider in the Philippines doing business as Sun Cellular. The company is a wholly owned subsidiary of Digital Telecommunications Philippines, or Digitel. Digitel is in turn owned by the JG Summit Group with a minority stake...

, the Philippines's fastest-growing mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...

 service.

The company is owned by JG Summit Holdings
JG Summit Holdings
JG Summit Holdings, Inc is one of the largest conglomerates in the Philippines with business interests in air transportation, banking, food manufacturing, hotels, petrochemicals, power generation, publishing, real estate and property development, and telecommunications...

, one of the country's largest conglomerates.

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 unprecedented 24/7 Call & Text Unlimited in October 2004, which propelled unparalleled growth in the wireless subscriber base giving the subscribers good value for their money.

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.

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.

Subsidiaries

Digitel is divided into the following subsidiaries:
  • Digitel Capital Philippines Ltd
  • Digitel Information Technology Services
  • Digitel Mobile Philippines
    Sun Cellular
    Digitel Mobile Philippines, Inc., is a mobile telecommunication service provider in the Philippines doing business as Sun Cellular. The company is a wholly owned subsidiary of Digital Telecommunications Philippines, or Digitel. Digitel is in turn owned by the JG Summit Group with a minority stake...

     (Sun Cellular)

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.

Ownership

The old ownership
  • JG Summit Holdings
    JG Summit Holdings
    JG Summit Holdings, Inc is one of the largest conglomerates in the Philippines with business interests in air transportation, banking, food manufacturing, hotels, petrochemicals, power generation, publishing, real estate and property development, and telecommunications...

    : 47.45%
  • PCD Nominee Corporation
    PCD Nominee Corporation
    PCD Nominee Corporation is a wholly owned subsidiary of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines...

    : 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%


Competition

Digitel's main competitors in the fixed-line and mobile markets are PLDT
Philippine Long Distance Telephone Company
The Philippine Long Distance Telephone Company commonly known as PLDT, is the largest telecommunications company in the Philippines. PLDT is also the largest company in the Philippines, ranked 1138th in the April 2009 update, and 1080th in the April 2010 update, of Forbes' Global 2000 list...

 (PLDT subsidiary Smart Communications
Smart Communications
Smart Communications is a wholly owned mobile phone and Internet service subsidiary of the Philippine Long Distance Telephone Company .On June 30, 2010 the company reported that it had over 45 million cellular subscribers.-Brands:...

 in the mobile market) and Globe Telecom
Globe Telecom
Globe Telecom , commonly known as Globe, is a telecommunications company in the Philippines. Globe provides mobile, fixed line, and broadband Internet services.- History :In 1928, Congress passed Act No...

.

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.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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