DICT confirms NMP’s pledge of 27 Mbps speed at cheaper price on rollout
The just-confirmed New Major Player (NMP), the Mislatel consortium, is promising high-speed broadband service at a much lower price, once it starts operating, the Department of Information Communications Technology (DICT) yesterday stated.
In its submitted Highest Committed Level of Service (HCLOS) bid, Mislatel pledged to deliver 27 Megabits per second (Mbps) of minimum average broadband speed on its first year before upgrading to 55 Mbps in the next four years.
Without giving an exact figure, the NMP promised to offer these speeds at a much lower price compare to the current offerings of incumbent telcos, PLDT, Inc./ Smart Communications, Inc. and Globe Telecom, Inc., the DICT reiterated.
“We have to be disruptive and so we have to offer lower prices, we have to offer faster internet services,” says Atty. Adel Tamano, spokesperson for the Mislatel consortium. “We have to be the better alternative or else consumers will not go to us.”
Mislatel took the first step to make their promises work after one of its partners, China Telecom, and DICT the other day (Nov. 20) signed a joint letter of intent for a feasibility study in using the government’s cable landing stations and connecting it to the former’s submarine cable.
The international submarine broadband infrastructure will connect the country to Hong Kong and USA, which offer cheaper rate.
However, DICT Acting Secretary Eliseo M. Rio emphasized that the facility is also available to all telco players.
Meanwhile, the NMP is planning to cover 37.03% of the national population in its initial year and gradually increasing its coverage to 84.01% of the population within the 5-year commitment period.
To back up their commitments, Mislatel consortium plans to spend 1257 billion in infrastructure and service rollout during the 5-year period.
The NMP even surpassed the maximum required value of capital and operational expenditure in the first year as they submitted 1150 billion to start their rollout operation, according to the DICT.
Any failure of commitment in any year will merit a forfeiture of the performance security the NMP posted as a requirement in the selection process, which is around 125 billion.
“Our government has full control on the consequences the NMP will suffer if it does not perform,” assured Rio.
To avoid this, he advised the NMP to partner up with small telco players in order to fulfill its commitment, saying Mislatel can share its facilities and frequencies with them.
The DICT secretary also expressed his positive outlook on the impending entry of the NMP, which is eyeing to operate by the latter part of 2019.
"The Filipino people is very excited [for this NMP] and we are hoping that we continue to fulfill the aspiration and campaign promise of President Duterte to change the telecommunications landscape and improve our Internet speed," Rio concluded.