The Philippine Competition Commission (PCC) has reportedly approved incumbent telco PLDT's proposed PHP 6.75 billion (USD 120 million) acquisition of broadband and cable TV provider, Sky Cable Corporation.
The PCC has been looking into the deal since PLDT first announced it in March 2023. According to media reports, PLDT confirmed in a statement to the Philippine Stock Exchange (PSE) that the PCC approved the transaction on January 19.
PLDT is a lot closer to finalizing the deal to acquire Sky's fiber broadband and cable TV businesses. PLDT stated that it must still finalize other closing conditions of the deal before the Sky Cable acquisition becomes official.
According to reports, PLDT plans to merge Sky's broadband business with its own, while the cable TV side of the business will be taken over by DTH satellite provider Cignal TV, which is owned by MediaQuest Holdings, PLDT Group's media partner.
Acquisition Advantages
The approval of PLDT's acquisition of Sky Cable Corporation by the Philippine Competition Commission (PCC) represents a significant strategic move for the telecom giant. With a focus on expanding its presence in the broadband market, PLDT aims to integrate Sky Cable's operations, leading to an expanded market share and a broader customer base. This move aligns with the trend of diversification in the telecommunications industry, allowing PLDT to enhance its competitiveness by offering a more comprehensive range of services.
The strategic integration of Sky Cable's broadband business with PLDT's operations offers potential synergies and operational efficiency. Through consolidating resources and streamlining operations, PLDT can achieve cost savings, optimize infrastructure management, and improve the overall delivery of services. This efficiency-driven approach is essential in a rapidly evolving telecommunications landscape where companies strive to meet growing consumer demands for reliable and high-speed broadband services.
Additionally, the acquisition allows PLDT to enhance its media presence through the strategic handover of Sky Cable's cable TV business to Cignal TV. This move positions PLDT as an integrated communications provider, capitalizing on the convergence of telecommunications and media industries. Overall, the approval of the acquisition signifies regulatory compliance, paving the way for PLDT to leverage its strengthened position to meet the rising demand for broadband and cable TV services in the Philippines.