It was reported recently that PLDT (TEL), through its international arm PLDT Global Corp., has entered into a partnership with SoftBank for SmartInternet Suite Ether, an internet connection service that can help address the diverse needs of businesses in Japan for a higher-grade internet environment.
Softbank Corp. is a fierce competitor of NTT Docomo in Japan. NTT Docomo is the wireless subsidiary of Nippon Telegraph & Telephone Corp. (NTT) of Japan. NTT is buying out minority stockholders of NTT Docomo to make NTT Docomo Inc. a wholly owned subsidiary.
The NTT Group has a total interest in TEL of 16.4% as of September 30, 2020. NTT Docomo, Inc. owns 10.55% of TEL as of September 30, 2020 while NTT Communications Corporation holds another 5.85% interest in TEL. Two Japanese representing the NTT Group sits at the Board of Directors of TEL. Thus, it could be said that the NTT Group is the foreign partner of TEL.
NTT sitting on the Board of TEL has not dissuaded TEL from doing business with its partner’s fiercest competitor.
In Japan, the strength of business relationships can determine many aspects of a commercial life. Japanese business relationships puts a strong emphasis on loyalty and trustworthiness.
It is not yet known how NTT will react to TEL partnering with Softbank Corp. , NTT’s fiercest competitor in its home market. A 16.4% stake is a very significant interest and could move markets.
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Disclaimer and Disclosure: This analysis is an independent viewpoint on publicly traded stocks in the Philippine market. Accuretti Systems Inc. trades stocks in the Philippine market.