China Telecom formally signs Philippines JV agreement
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China Telecom has formally signed the agreement to create Mislatel, the joint venture that will become the Philippines’ third mobile operator, committing to invest $5.4 billion in the venture.
The agreement with local conglomerate Udenna Corporation was signed last week in Beijing.
China Telecom teamed up with Udenna Corporation, consisting of businesses owned by local tycoon Dennis Uy, to jointly submit an application in the Philippines’ new major player selection process in 2018.
A company owned by Uy, also known as Mislatel, was granted a congressional telecommunications franchise in 1998, and the joint venture plans to use this franchise to operate.
The joint venture’s entry in the market had the support of president Rodrigo Dutertre, but doubts were raised over the validity of this franchise due to Mislatel’s failure to launch services within the required window. But in February, the Philippines’ senate approved the transfer of the franchise to the joint venture.
But due to delays receiving the required approvals to operate, Mislatel last week revealed plans to postpone its planned launch date from late 2020 to early 2021.
Questions & Answers
Q.Who are the parties involved in the new joint venture for the Philippines' third mobile operator?
Who are the parties involved in the new joint venture for the Philippines' third mobile operator?
China Telecom has partnered with Udenna Corporation, a local conglomerate comprising businesses owned by Dennis Uy. Together, they have created Mislatel, the joint venture for the new mobile operator.
Q.What is the total investment China Telecom is committing to this new venture?
What is the total investment China Telecom is committing to this new venture?
China Telecom has formally committed to investing $5.4 billion in the Mislatel joint venture. This investment is intended to establish the Philippines' third mobile operator.
Q.Why were there doubts raised about the validity of Mislatel’s franchise?
Why were there doubts raised about the validity of Mislatel’s franchise?
Doubts arose because a company also known as Mislatel, which held the congressional telecommunications franchise from 1998, had failed to launch services within the required timeframe.
Q.When is the new planned launch date for Mislatel’s services?
When is the new planned launch date for Mislatel’s services?
Mislatel recently announced plans to postpone its launch. The new anticipated launch date for its services is now early 2021, rather than the previously planned late 2020.
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