Here’s what you can expect from our provisional third telco
In case you missed it, the Mislatel Consortium, headed by Davao-based tycoon Dennis Uy and his Udenna corporation has been made our provisional third telco by the National Telecommunication Commission (NTC).
To become our third telco, Mislatel had to achieve high scores in NTC’s Highest Level Commitment of Service or HCLOS, three criteria of service that was agreed upon by the NTC and stakeholders beforehand.
This was speed (25%), coverage (40%), and capital/operational expenditure (35%).
As part of their status as a provisional telco, Mislatel will have to commit to its promises in the three criteria for five years, or suffer a cut in its performance security ranging from Php 14 billion to Php 24 billion.
Mislatel promised quite a bit in its documents, chief of which are internet speeds of 27Mbps on average for its first year of operation in the Philippines.
The company then promises to double those speeds to 55Mbps in their second year of operations and maintaining it until their fifth year.
That’s a big promise, considering that OpenSignal reports that Smart, who has the fastest download speed of the two telcos in the Philippines, has an average of 13.02Mbps. Globe has 7.34Mbps currently.
Mislatel also promised to provide 37.03% nationwide coverage in its first year of operations and expects to match Smart (64%) and Globe’s (67.79%) LTE coverage by its third year of operations, when they expect to have around 70% coverage. The company aims to have 84% coverage in year 5.
As far as spending money to get achieve those promises, Mislatel says it plans to spend around Php 257 billion in 5 years, with the bulk of that (around Php 150 billion) in their first year of operations. It only expects to spend around Php 27 billion in the succeeding four years.
Globe spent around Php 42.5 billion in CapEx in 2017 and 2018, while Smart spent around Php 47 billion and Php 50 billion in the same periods.