Eastern Communications

Eastern Telecommunications Philippines, Inc. (ETPI), doing business as Eastern Communications, is a telecommunications company in the Philippines. Founded in 1878 during the final years of the Spanish colonial era, it was the first company to provide telegraphic services.

Eastern Telecommunications Philippines, Inc. (ETPI)
Eastern Telecom (1990s-2019)
Eastern Communications (2019-present)
TypePrivate
IndustryTelecommunications
Founded1878 (1878)
Headquarters
Makati, Metro Manila
,
Philippines
ServicesFixed telephone, fiber broadband internet, data services
ParentSan Miguel Corporation
Websitewww.eastern.com.ph

At present, Eastern Communications offers fixed broadband services in Metro Manila (Makati, Ortigas Center, Manila, Caloocan and Navotas), Cavite, Laguna, Baguio and Cebu City.

History

The company was founded in 1878 as the Eastern Extension Australasia and China Telegraph Company which is a subsidiary of Britain's Cable and Wireless when it was authorized by the Spanish government to provide its first telegraph services. It was also authorized to construct and operate the first submarine cable linking the Philippines and Hong Kong. It later gained its 50-year franchise under Republic Act 808 in 1952, and later amended under Republic Act 5002 in 1967.

In 1974, President Ferdinand Marcos signed Presidential Decree No. 489, authorized the transfer of Eastern Extension's franchise to a newly established firm Eastern Telecommunications Philippines (ETPI). The firm was co-owned by Universal Molasses Corporation (UNIMOLCO), and a consortium led by three businessmen (collectively known themselves as the "BAN Group") who were cronies of the Marcoses: Jose L. Africa, Manuel H. Nieto Jr., and Roberto Benedicto.[1]

After the EDSA People Power Revolution in 1986, the Aquino admnistration thru the Presidential Commission on Good Government (PCGG) sequestered all of the companies controlled by Marcos cronies, including ETPI. In 1992, PCGG and Benedicto signed a compromise agreement wherein Benedicto surrendered 51% of his equity stake in ETPI. Meanwhile, UNIMOLCO sold its own shares to First Pacific-backed telecomunications firm Smart Communications. In 1995, the Sandiganbayan issued a case on crony capitalism against the Marcoses and their cronies on the recovery of their ill-gotten wealth businesses.

Privatization

In 2005, the Philippine government, thru its national privatization program, sold its 57% stake in ETPI to businessman and former Trade Minister of the Marcos administration Roberto Ongpin through ISM Communications Corporation. In October 2007, Ongpin spent P100 million to acquire Smart's stake in ETPI, raising to 67.5%. The following year, the government officially sold its remaining stake to ISM.[2]

In 2011, the San Miguel Corporation subsidiary Vega Telecom bought 40% stake in ETPI after ISM sold AGN Philippines (which owned the said stake) to Vega. SMC later bought the remaining stake thru another subsidiary (San Miguel Equity Securities) after ISM divested its own in ETPI.[3][4]

In 2016, SMC announced its selling of Vega Telecom and its subsidiaries to the joint owners PLDT and Globe Telecom. ETPI, however, was not part of the deal.[5]

In 2019, the Sandiganbayan Third Division ordered 15 heirs of Marcos cronies Africa and Nieto to surrender all of their shares in ETPI. It upheld its decision the following year.[6]

Services

Eastern Communications currently offers fixed broadband, telephone and fiber internet services in high-end commercial and residential areas.

References
  1. "Presidential Decree No. 489, s. 1974". Official Gazette.
  2. Gonzales, Iris (2 February 2008). "Government to sell its stake in Eastern Telecoms". The Philippine Star.
  3. Amojelar, Darwin (15 January 2011). "San Miguel purchases stake in Eastern Telecom". The Manila Times.
  4. Montecillo, Paolo (21 October 2011). "SMC buying Ongpin group's ETPI shares". Philippine Daily Inquirer.
  5. "San Miguel Ends Telco Push With $1.5 Billion 'Master Stroke'". May 30, 2016 – via www.bloomberg.com.
  6. Panti, Llanesca (30 September 2020). "Sandiganbayan upholds ruling ordering Marcos' associates to return ill-gotten wealth off Eastern Telecom". GMA News.
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