3rd telco player: Selection was ‘transparent, fair’

Malacañang, other telco players welcome Mislatel Consortium as third provisional telecommunications player

Malacañang welcomed on Thursday, Nov. 8, Mislatel Consortium as the third provisional player in the Philippines’s telecommunications market, expressing confidence that its entry was done through a “transparent, fair, public and open selection process.”

“We welcome the entry of a third telecommunications player in the country as a positive development,” Presidential spokesperson Salvador Panelo said in a statement.

“Our people have long waited for a reliable, efficient, and inexpensive telecommunications service. The President’s strong political will has laid the foundation for its realization,” he added.

Mislatel Consortium, a partnership between China Telecommunications Corp. and Davao businessman Dennis Uy’s Udenna Corp. and its subsidiary Chelsea Logistics Holdings Corp., was declared the provisional new major player (NMP) in the telecom- munications’ industry.

Mislatel was the only bidder that was able to present all the documents needed for the third telecommunications spot.

The two other bidders, Sear Telecom-Tier1 Consortium and Philippine Telegraph and Telephone Company (PT&T), were disqualified although they have three days within which to file a motion for reconsideration.

Sear-Tier1 failed to submit the P700-million participation security while PT&T lacked a certification of technical capability from the NTC.

Acting Department of Information and Communications Technology (DICT) Secretary Eliseo Rio Jr. said the selection documents of the two other bidders would be re-assessed if their motion for reconsideration were granted.

Depending on their commitments, the two other bidders could still win over Mislatel in three days, Rio added.

But Rio also said Mislatel can challenge the possible changes on the selection of the provisional third major player in the telecommunications market.

“We have a provisional player now. Well, we have to wait for that

provisional (what will happen next since it is just provisional),” he said.

“If one of the motions for reconsideration will be granted, then bids (their bis will be re-opened). And if turns out na better

commitment Udenna, then it will be [replacing Mislatel]. But of course Udenna can complain [if there will be changes on the decision],” Rio added.

Panelo made it clear that President Rodrigo Duterte did not have a hand in the selection of Mislatel as a provisional telecommunications player, noting that the Chief Executive “does not micromanage the given assignments of his alter egos.”

Panelo said the government

kasi

yung

kung ano ang mangyayari naman

bubuksan yung kanilang

yun,

mas nila kaysa sa

was expecting losing bidders to appeal their cases before appropriate agencies, “in the spirit of fairness.”

“Mislatel Consortium passed NTC’s preliminary selection process. There was a transparent, fair, public and open selection process, done in accordance with laws, as well as with pertinent rules and regulations,” he said.

“Complying with the legal and constitutional requirements, Mislatel won over the two other bidders. Impositions in favor of the government and the end users have been made such as the requirement of performance bonds to ensure sound performance by the new player,” he added.

Panelo believes Mislatel’s entry will end the duopoly in the country’s telecommunications industry, since telecommunications giants PLDT Inc. and Globe Telecom Inc. are the only two major players.

“Genuine competition in the telecommunications industry can come about only with a new major player which will break the existing duopoly thereby creating the climate of good and efficient services for Filipinos,” he said.

“The entry of the third player is another shining example of the brand of governance that the President has trail blazed for emulation,” the Palace official added.

“We welcome the entry of a new player in the Philippine telecommunications industry. Competition is the norm in a liberalized environment and will benefit our customers, the industry, and the country,” PLDT said in a statement posted on its Facebook page.

Globe, for its part, said the selection of Mislatel would “help foster a healthy competitive environment and ultimately benefit consumers.”

The Ayala-led telecommunications company said the NMP has the potential of opening up new sources of revenue streams for telcos while providing consumers with more innovative products and services.

“We are glad for the smooth selection process undertaken by DICT and NTC. As previously and continuously stated, we hope the government will equally support the existing telcos like Globe, which continue to provide services to millions of Filipinos, and in the case of Globe, over 67 mil-lion total subscribers,” said Globe general counsel Froilan Castelo.

Globe said it has started divesting its tower assets and creating a separate tower holding company to help foster competition.

“This initiative will allow the third player to rapidly roll out its network and launch commercial operations. It will also give smaller players the opportunity to scale up their business without the burden of high capital expenditures,” Globe added. /