PHILIPPINE LONG DISTANCE TELEPHONE COMPANY/SMART

The company

The PLDT-Smart Communications consortium dominates all aspects of the Philippine telecoms market, accounting for 65% of the international gateway market, 90% of the long-distance market, and 60% of the cellular market.  Smart and PLDT’s own cellular brand, Talk 'n Text, are poised to take advantage of the anticipated growth in wireless services.  Subscribers to Smart’s network have grown at a rate of over 25% p.a. in recent years. The PLDT-Smart Communications merger has brought together two of the most respected management teams in Philippine business. 

On October 1, 1999, NCP invested on behalf of PDICL PhP172.8 million (US$4.4 million) in Smart Communications, Inc.  Philippine Long Distance Telephone Company (PLDT) acquired 100% of Smart in a share swap at PhP13.875 per share  - valuing Smart at US$997 million, a 45% premium to PDICL’s effective acquisition cost. 

On December 22, 1999, NCP on behalf of PDICL invested additional PhP80.2 million (US$2 million) in Smart Communications, Inc.  PLDT is listed in Philippine Stock Exchange (Bloomberg: TEL PM). 

The future

PLDT acquired Home Cable, the Philippines’ second largest and fastest growing cable TV network, and more recently started offering high-speed Internet access through the system.  The group continues to expand Infocom, already the country’s leading ISP and its other investments in “content”, such as in a nation-wide radio network.  PLDT is presently evaluating investment opportunities in broadcast TV and other video content providers.

The company has incorporated ePLDT, a wholly owned subsidiary for PLDT's Internet, e-commerce and multimedia initiatives and ventures. ePLDT will serve as a holding company for Home Cable, Infocom and the company's IDC, and eventually other IT investments and Internet businesses, e.g. BayanTrade.com. With the creation of ePLDT, PLDT's businesses are now grouped into three principal lines – fixed line, wireless and e-commerce.