TransCo close to deal to bolster third telco bid
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The Philippines’ state-run National Transmission Corporation (TransCo), the owner of the nation’s power grid, is close to a deal with the private operator of the grid National Grid Corp (NGCP) to use NGCP’s transmission facilities as the backbone for its bid to become the nation’s third operator.
TransCo has sent a draft memorandum of agreement for a deal involving use of the grid’s inter-plant fiber transmission equipment for telecoms facilities, ABS-CBN News reported.
TransCo has previously expressed an interest in forming a partnership to apply for the third telco license. The government has meanwhile reportedly approached the Chinese government with an offer for one of China’s state-run operators to play the role, and plans to hold the allocation as a beauty contest.
But according to the report, while NGCP has stated that it is eager to participate in the government’s plan to improve telecoms services in the nation and break the PLDT-Globe duopoly, it does not agree that TransCo should be party to the deal.
An NGCP spokesperson told the publication that any deal involving allowing a third party or the government to use NGCP’s available network capacity should be negotiated with NGCP.
The company also said it is not interested in ownership in a third player and is willing to allow use of the equipment at minimum or even no cost.
Questions & Answers
Q.What is the primary obstacle TransCo faces in securing a deal with NGCP?
What is the primary obstacle TransCo faces in securing a deal with NGCP?
NGCP does not agree that TransCo should be party to a deal for using its transmission facilities. NGCP believes any agreement for third-party or government use of its network capacity should be negotiated directly with them.
Q.What kind of infrastructure does TransCo intend to use for its telecoms facilities?
What kind of infrastructure does TransCo intend to use for its telecoms facilities?
TransCo intends to use the grid’s inter-plant fiber transmission equipment. This infrastructure would serve as the backbone for its bid to become the nation’s third operator in the telecommunications sector.
Q.Has NGCP shown any willingness to cooperate with the government's plan despite its disagreement with TransCo?
Has NGCP shown any willingness to cooperate with the government's plan despite its disagreement with TransCo?
Yes, NGCP has stated it is eager to participate in the government’s plan to improve telecoms services and break the duopoly. It is willing to allow equipment use at minimum or even no cost, but not with TransCo as a party.
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