COMPETITION PRODS PLDT TO BOOST CAPEX

IN a move to boost its network, PLDT Inc. plans to set higher capital expenditures (capex) for next year ahead of the expected entry of China Telecom as the Philippines’ third telecommunications player.

PLDT Chairman Manuel V. Pangilinan told reporters on Wednesday that the company was eager to do this, after exceeding this year’s full- year capex guidance of P38 billion to “north of P50 billion,” which he described as “historic.”

He also said setting a higher capex would prepare the company in guarding its market position, adding that it would not borrow to fund its 2018 capex.

The business tycoon said the “normal level of [ about] P40 billion could be handled by Ebitda”— earnings before interest, taxes, depreciation and amortization— while the remainder would be funded by selling assets.

“One is the remaining receivables from Metro Pacific [ Investments Corp. with] respect of the sale of the Beacon shares— if I recall the number [ correctly], it’s about P15 billion. The other major asset is Rocket Internet—[ it]… is worth [ about] P12 billion,” Pangilingan said.

“All I’m saying is we should calibrate [ that] if we decide to raise beyond the normal capex of P46 billion. We [ should] probably dispose of Rocket shares or discount that of Metro Pacific in the market to get the cash needed to take care of the capex,” he explained during a briefing on PLDT’s nine- month earnings.

Despite the entrance of China Telecom, Pangilinan remained bullish over PLDT’s operations in 2018, saying it would be a “better year” for the group.

“We’re spectators only... waiting for that [ China Telecom’s entry] to happen and trying to get ready, in case it happens in the first quarter [ of 2018], because that’s what President [ Duterte] wants to happen,” he said.

“[ I] t’s difficult to predict what China [ Telecom] wishes to do here... There are some people saying they are going to focus on fixed line broadband. Until it happens, we don’t know,” he added.

His statements came after Malacañang announced that Beijing chose the Chinese telco to invest in the country’s telecommunications industry.

It also announced on Tues- day that the President tasked the Department of Information and Communications Technology and the National Telecommunications Commission to ensure that the new player would be operational in the first three months of 2018.

President Duterte has long expressed eagerness to bring in a new telco player to compete with the so- called duopoly of PLDT and Globe Telecom to address the people’s clamor for quality internet services.

In response, both telcos said they are open and ready for competition.