BIZ BUZZ: TEMPTING POACHING PACKAGE

Several schools that are part of the University Athletic Association of the Philippines have tycoons or conglomerates bankrolling their sports teams, especially in basketball which presents the biggest marketing opportunity for corporate sponsors.

Unfortunately, the University of Santo Tomas isn’t one such school. Although it has its share of high profile and wealthy alumni, there is no single billionaire or business empire that is associated with the sports program of Asia’s oldest Catholic university.

That explains last week’s brouhaha where UST’S basketball standout Rhenz Abando was inexplicably benched during a crucial game, and word eventually emerged that this was because he was being courted—no, poached—by a rival university.

Word in business circles last week was that the enticements being dangled in front of the young star player was substantial and compelling enough as offers in the amateur basketball circuit go.

Biz Buzz heard that the package that was assembled for the athlete consisted a basic package plus a sweetener that was bound to make any dutiful family-loving person think about the offer seriously.

First, there was the basic “three Cs”: condo, car and cash. And, from what we heard, the cash offer was a substantial sum, too (not that the first two Cs are insufficient, of course).

Then the kicker: the poaching party also offered the athlete guaranteed employment once his athletic career was over. Good? Wait, it gets better: the poacher also offered guaranteed employment for a number of his relatives if he agreed to switch allegiance to the other university. Wow, that’s something. That is a serious package worth considering.

Which tycoon or which business group is wealthy enough to make such an offer? Who knows? But it appears that no transfer will be happening anytime soon after the negotiations—with the still unnamed party, mind you—became public.

In any case, all’s well that ends well for UST (for now) after the team firmly secured its place in the Final Four of this year’s UAAP basketball tournament by eliminating from contention another school that could surely use a player of Abando’s prowess, the National University. —DAXIM L. LUCAS

When MBC speaks

The Oct. 16 statement of the Makati Business Club lauding the release of the report on the 2016 vice presidential election test recount and hoping that this would lead to the dismissal of the protest (by Ferdinand “Bongbong” Marcos Jr. against Leni Robredo) was the first controversial statement from a major business organization in a long while.

MBC said the dismissal would reduce the political and judicial uncertainty that it spawns risk premium investors in the Philippines.

We heard that this was so far the single MBC statement that has gained a lot of traction in social media.

The decision was “pretty quick for a board as busy as MBCS, and on a matter that might be construed, or twisted, by some as getting involved in partisan politics,” said a source involved in the deliberations.

“If you look up the board, you'll understand who flies what colors, and who might back away from controversy because they represent large companies in regulated industries. So, the statement was not without deliberation, to say the least. But that it was worked on so quickly speaks to the sense of urgency felt by nearly all,” the source said.

In the past, MBC would usually try to address matters as sensitive as this by putting together a joint statement with other business organizations, for the obvious purpose of finding strength in numbers. But in this case, the MBC board (chaired by Edgar Chua and co vice chaired by Jaime Augusto Zobel de Ayala and Roberto de

Ocampo) decided that “expediency outweighed safety.”

Also, there were a few other statements about similarly sensitive issues that were deliberated extensively first by MBC trustees then by heads of other organizations, but never saw the light of day.

“Then after this, other organizations expressed interest [to speak out]—perhaps after seeing very favorable reactions on the post, and unfavorable ones that didn't quite stick because we tried to make the statement as bulletproof as possible, sticking to our mandate of economic growth,” the source said. “Some were more eager than the others, and there were some who struggled to get a majority, perhaps because of political risk.”

So just day after (Oct. 17), MBC issued another statement cosigned by other organizations like Bishops-businessmen’s Conference, Financial Executive Institute of the Philippines, Institute of Corporate Directors, Judicial Reform Initiative, Management Association of the Philippines and even the Philippine Chamber of Commerce and Industries calling for an expeditious resolution of the protest.

“The signatory institutions believe that an expeditious resolution of the protest would spare our policymakers and leaders from the political distraction—at a time when focus on more fundamental challenges facing the country is critical,” the joint statement SAID.—DORIS DUMLAO-ABADILLA ‘Dito na me’ The country’s third mobile player, China Telecom-backed Dito Telecommunity, took a significant step in making its infrastructure rollout a reality.

The company’s first cell site—which will be built by Ilocos politician Luis “Chavit”

Singson’s LCS Group in partnership with Thailand’s UA Withya Pcl—broke ground in a patch of dirt in the town of Caoayan, Ilocos Sur.

Dito will be the first customer of the site, which will also be the country’s first common tower, meaning rivals PLDT Inc. and Globe Telecom can install their radio equipment in the same location.

The event, while ceremonial in nature, was significant for a host of reasons in the context of this administration’s drive, through the Department of Information and Communications Technology, to introduce new competition in the telco sector.

Some even pointed out how it was quite a sight to see Singson, who made an unsuccessful bid for the third telco slot, come to terms with a former rival.

That’s hardly a unique situation in the Philippines. In business as with politics, there are only mutual interests. And Singson wears both hats comfortably.

At the sidelines of the event, he told Biz Buzz he no longer pursued an earlier case to challenge the telco franchise of Dito since it would delay the third telco rollout by at least “two years.”

In an answer very much in sync with his public persona, Singson said he put the case “to sleep.”

A single cell site hardly makes a national telco but it’s a start.

Recall that Dito has one year to cover 37 percent of the population even as some experts argue that this is not enough time.

The difference, though, is the DICT’S common tower initiative, which has yet to be finalized, and some creative partnerships that Dito might pursue.

Dito chief technology officer Rodolfo Santiago said the rollout would be a mix of company-operated and common towers.

Rolling out is one thing. It’s another challenge altogether to go up against deeply-entrenched incumbents who spend vast sums to upgrade services—and retain customers.

That reminder was all too evident at the Caoayan groundbreaking event with cell towers operated by Globe and PLDT’S Smart looming not too far away.

Dito is supposed to launch commercially before July 8, 2020—which marks the end of its first year. People in the company have no reason to forget that crucial date, Dito spokesperson Adel Tamano said. He sends everyone a daily countdown reminder to emphasize that point. —MIGUEL R. CAMUS INQ