No dis­tinct se­cu­rity risk with 3rd telco

Sun.Star Cebu - - OPINION - FACE­BOOK: /ce­busun­star TWIT­TER: @sun­starcebu

We wel­come the gov­ern­ment’s se­lec­tion of a third telecom­mu­ni­ca­tions player that is ex­pected to help boost the coun­try’s mo­bile In­ter­net ser­vices. We are count­ing on the new­comer to com­pete bru­tally with the na­tion’s two dom­i­nant play­ers in de­liv­er­ing faster mo­bile In­ter­net con­nec­tion speeds at a lower price.

Fol­low­ing a bid­ding process, gov­ern­ment reg­u­la­tors de­clared the Mis­la­tel con­sor­tium as the pro­vi­sional third player in a mar­ket long ac­cused of be­ing un-com­pet­i­tive and ruled by the du­op­oly of PLDT Inc. and Globe Tele­com Inc.

The con­sor­tium is com­posed of lo­cal ty­coon Den­nis Uy’s Udenna Corp. and sub­sidiary Chelsea Lo­gis­tics Hold­ings Corp., in part­ner­ship with China Telecom­mu­ni­ca­tions Corp. and Min­danao Is­lamic Tele­phone Co. Inc.

We are ab­so­lutely con­vinced that the con­sor­tium is in a solid po­si­tion to com­pete with the two well-en­trenched play­ers in the mar­ket. The group has all the where­withal needed.

As for po­ten­tial se­cu­rity risks with China Tele­com in play as the new­comer’s for­eign part­ner, we say risks are ev­ery­where. And we have reg­u­la­tors pre­cisely to man­age those risks. Be­sides, both PLDT and Globe are al­ready at least 40 per­cent owned by for­eign en­ti­ties.

First Pa­cific Co. Ltd. of Hong Kong and NTT DOCOMO Inc., the dom­i­nant mo­bile phone op­er­a­tor in Ja­pan, have large di­rect eq­uity stakes in PLDT. Sin­ga­pore Telecom­mu­ni­ca­tions Ltd., the largest mo­bile net­work op­er­a­tor in Sin­ga­pore, also has a sub­stan­tial stake in Globe.

The Mis­la­tel con­sor­tium has com­mit­ted to in­vest up to P257 bil­lion over the next five years, and to de­liver a min­i­mum av­er­age broad­band speed of 27 Megabits per sec­ond (Mbps) in its first year of op­er­a­tion and 55 Mbps by the fifth year. It ex­pects to pro­vide net­work cov­er­age to 84.01 per­cent of the pop­u­la­tion by the fifth year. --Rep. Luis N. Cam­pos Jr. of Makati City

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