Telstra has abandoned talks with food and beer giant San Miguel about setting up a third mobile operator in the Philippines, but vows to continue its pursuit of growth opportunities in Asia.
Australia's biggest phone and internet provider, which announced the talks in August, was looking to invest up to $US1 billion ($A1.33 billion) in the proposed wireless joint venture in the Philippines, which has one of the lowest mobile network speeds in the world.
The two parties agreed over the weekend to end talks after failing reach commercial arrangements.
"Despite an enormous amount of effort and goodwill on all sides, we were simply unable to come to commercial arrangements that would have enabled us all to proceed," Telstra chief executive Andrew Penn said in a statement on Monday.
Mr Penn said that while the opportunity was "strategically attractive", and it had great respect for San Miguel and its president Ramon S Ang, it was "obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved".
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.
While joint venture talks have ended, Telstra said it has offered to continue technical network design and construction consultancy support to San Miguel, should the services be required.
Telstra shares closed at $5.16 on Friday, valuing the company at $63.08 billion.
© 2016 AAP
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