A deal to construct a new mobile network in the Philippines between Telstra and San Miguel Corporation have made an abrupt conclusion. Both companies have failed to reach an agreement on the supposed commercial arrangements after drawn-out negotiations, according to Sydney Morning Herald.
Telstra and San Miguel
Reports have indicated that Telstra had intended to invest up to $1 billion for a potential partnership with the beer giant. San Miguel Corporation, that reportedly accounts for 6 percent of the Gross Domestic Product (GDP) in the Philippines, unfortunately, couldn?t come up with a solution to work together, ABC News reported.
Telstra chief executive Andrew Penn confirmed that the deal between both parties have stopped. ?Despite an enormous amount of effort and goodwill on all sides, we were simply unable to come to commercial arrangements that would have enabled us all to proceed,? Penn said in a statement, according to ABC News.
Penn added that although their deal would become a captivating move, the commercial arrangements between San Miguel Corporation needed to have a correct balance between risk and reward for both the companies to make a worthwhile agreement.
As for other issues concerning Telstra and San Miguel Corporation, ABC News shared that Telsta proposed to supply the company with ?technical network design? and ?construction consultancy support? should they ever need it?s services.
On the other hand, San Miguel Corporation president Ramon Ang told the Philippine Daily Inquirer the same opinion on the matter. ?Both SMC and Telstra worked hard to come up with an acceptable resolution to some issues,? he said in a statement. He added that they unfortunately cannot continue with the discussion.
?I believe this is best for all parties.?
What do you think about the failed agreement between Telstra and San Miguel Corporation? Should they have gone through with the decision to construct a new mobile network?