CHINA PICKS INVESTOR IN PH TELECOM

Beijing has chosen China’s largest telecommunication company as the third new player that would try to break a duopoly in the Philippine telecommunications market, a Malacañang official said on Sunday.

Presidential Communications Secretary Martin Andanar said Acting Information and Communication Secretary Eliseo Rio told a recent Cabinet meeting that state-owned China Telecom would be entering the Philippine market.

“In our last Cabinet meeting, which was only last week, [Rio] reported that China had chosen the company that would invest in our country. It is China Telecom,” Andanar said in a radio interview.

“China Telecom is the biggest telecommunications company in China,” he added.

Local partner

Andanar said China Telecom would have to find a local partner, as the 1987 Constitution allows foreigners to own only up to 40 percent of public utilities.

“If you are a foreign investor, you cannot go beyond 40 percent. So what then? They will have to find a partner here in the Philippines,” he said.

“That partner should not be a small-time company. It should have a lot of money,” he added.

Andanar’s announcement came after Malacañang’s Nov. 20 disclosure that President Duterte had offered to China the “privilege” of operating the third telco carrier in the country to break up the industry duopoly of PLDT Inc. and Globe Telecom.

Presidential spokesperson Harry Roque said Mr. Duterte made the offer during his meeting with Chinese Premier Li Keqiang in Malacañang.

“During the bilateral talks between President Duterte and the Chinese premier, President Duterte offered to the People’s Republic of China the privilege to operate the third telecom carrier in the country,” Roque told a press briefing.

“This is the latest instance of the President proving that he has the political will to do what is necessary to benefit the Filipino people,” he said.

“I repeat, the announcement is that duopoly, that telecoms duopoly is about to end,” he added.

Roque said the President ordered that all applications from prospective new players should be filed with the Office of the Executive Secretary, which was given 45 days to act on them.