Philippines’ Duterte urges fast-track for third telco
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The Philippines’ president Rodrigo Duterte has announced plans to fast-track the entry of a third operator into the market, and wants the operator to be up and running within the first three months of next year.
Duterte has directed the Department of Information and Communications Technology and regulator the National Telecommunications Commission to approve all applications and licenses within seven days of a completed submission.
The president last month approached the Chinese government with the opportunity to become the Philippines’ third major player in partnership with a local company. The as-yet unnamed Chinese telco would take a 40% stake in the venture with a consortium of local companies expected to own the remaining 60%.
Philippines’ courts have meanwhile been warned against interfering and prolonging the process of the entry of the third player.
The government has meanwhile moved to allay fears that China’s entry into the telecoms sector may compromise national security in light of the ongoing South China Sea dispute, noting that foreign players already hold minority stakes in incumbent operators Globe and PLDT.
Questions & Answers
Q.What is the expected timeframe for the third telecoms operator to begin operations?
What is the expected timeframe for the third telecoms operator to begin operations?
President Duterte wants the new operator to be operational within the first three months of next year. He has also directed relevant departments to approve applications and licenses within seven days of submission.
Q.Which government agencies are responsible for approving the new telco's applications and licenses?
Which government agencies are responsible for approving the new telco's applications and licenses?
The Department of Information and Communications Technology and the National Telecommunications Commission have been directed to approve all necessary applications and licenses. This process should take seven days after a complete submission.
Q.What is the proposed ownership structure for the new telecoms venture?
What is the proposed ownership structure for the new telecoms venture?
An unnamed Chinese telco is expected to take a 40% stake in the venture. A consortium of local companies would then own the remaining 60% of the new third player.
Q.How is the government addressing concerns about national security regarding China's involvement in the telecoms sector?
How is the government addressing concerns about national security regarding China's involvement in the telecoms sector?
The government is trying to allay fears about national security, citing that foreign players already hold minority stakes in existing operators Globe and PLDT. This is despite the ongoing South China Sea dispute.
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