China Telecom Tapped To Become 3rd Telco Player

China Telecom Tapped To Become 3rd Telco Player

Photo via AFP

The gov’t hopes to break the duopoly of PLDT and Globe

After San Miguel Corp’s aborted telco launch with Australian player Telstra, the government is eyeing a new player to break the duopoly of ruling telcos PLDT and Globe.

According to Communications Secretary Martin Andanar, the Chinese government has selected China Telecom to invest in the Philippines. This was earlier disclosed by Eliseo Rio, the current acting Secretary of the Department of Information and Communications Technology (DICT).

China Telecom Corporation Ltd is one of the two interested parties in setting up a third telco in the Philippines, with the other one being China Mobile Limited.

China Telecom Corporation Ltd is the second largest telecommunications company in China, and currently has 215 million mobile subscribers, 123 million broadband subscribers, and 127 million access lines as of end-2016.

Of course, China Telecom cannot set up shop in the Philippines alone, and will need a local partner just like SMC and Telstra. According to our constitution, only companies that have 60% Philippine ownership can operate as a public utility.

“Kailangan mo nga iyong makikipag-partner doon sa hindi pipitsugin, at of course iyong mayroon nang telecom franchise,” Andanar said.

“Minamadali na ito ng gobyerno natin sapagka’t habang tumatagal eh nabubuwisit ang mga kababayan natin sa mga dropped calls at mabagal na internet,” he added.

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