Putting a lot of money and not having any management control over it is a common problem why there is little direct foreign investment in the oligarch economy of the PH.

Telstra drops Philippines joint venture plan
REBECCA THURLOWDOW JONESMARCH 14, 2016 9:46AM



Telstra and San Miguel have abandoned talks over a wireless joint venture in the Philippines, but vowed to continue pursuing growth opportunities in Asia.

Australia’s biggest phone and internet provider, which announced the talks in August, was looking to invest up to $US1 billion in the proposed wireless joint venture in the Philippines, which has one of the lowest mobile network speeds in the world.

However Telstra chief executive Andrew Penn said the companies were unable to reach commercial arrangements on a possible equity investment in the venture.

“While this opportunity is strategically attractive, and we have great respect for San Miguel Corporation and its President Mr (Ramon) Ang, it was obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved,” Mr Penn said.

Telstra (TLS) has offered to continue technical network design and construction consultancy support to San Miguel.

The Australian telecommunications company had envisaged investing up to $US1 billion in the joint venture.

Telstra would continue to pursue growth opportunities in Asia consistent with its strategy, Mr Penn said.

The telco has boosted investments in Asia over the past 18 months, including the $US697 million acquisition of submarine cable network Pacnet, as its home market dominance comes under pressure from rivals.

“Our investment decisions will be guided by our capital management framework. Investments remain an important part of our future to ensure sustainable growth in earnings and shareholder returns over time,” he added.

Telstra shares closed at $5.16 on Friday, valuing the company at $63.08 billion.

With AAP