China Telecom eyeing services in Philippines

MANILA — State-run China Telecom Corp could become the third telecoms player in the Philippines, officials of the Southeast Asian nation said on Sunday, as the government looks to stir up competition in an effort to boost local services.

Philippines President Rodrigo Duterte last month offered China the “privilege” of challenging a long-standing duopoly that has frustrated consumers because of slow and intermittent internet and mobile phone services.

“The Chinese government selected China Telecom to invest in the Philippines upon invitation by President Duterte during the bilateral meeting last Nov 16,” said Eliseo Rio, secretary of the Department of Information and Communications Technology, told Reuters.

Chinese companies could not operate alone in the Philippines and would need to partner with a local company.

The government is now looking at who will partner with China Telecom on a 60-40 basis, Rio said.

The Philippine constitution’s 40 percent cap on foreign ownership of domestic telecoms companies has kept interest from multinationals at bay in the market of more than 100 million people.

Presidential Communications Secretary Martin Andanar said the State-owned Chinese company should partner with a reputable Philippines company with an existing telecoms franchise.

“The government is fast-tracking this because consumers are getting annoyed with dropped calls and slow internet connections,” Andanar said in a radio interview on Sunday.

Also seeking to be a major player is Philippine Telegraph & Telephone Corp, which had said it was talking with China Telecom and Datang Telecom about strategic partnerships to challenge the nation’s dominant duo of PLDT Inc and Globe Telecom Inc.

The move came as China Telecom, China’s third largest mobile carrier by subscribers, steps up efforts to go global. The Stateowned company said in April that it would invest more than $1 billion over the next three to five years to expand its presence in countries and regions involved in the Belt and Road Initiative.

“The investment into the Philippines will build up its influence in Southeast Asia, and may motivate other Chinese telecom players to follow suit,” said Xiang Ligang, a telecom analyst and founder of the telecom industry website Cctime.