“The telecom duopoly is about to end,” Malacañang declared on Monday.
“The telecom duopoly is about to end,” Malacañang declared on Monday.
Presidential spokesperson Harry Roque announced that President Rodrigo Duterte had offered China the “privilege” of operating the third telco player in the country to “break up” the industry duopoly of PLDT and Globe Telecom.
Roque said Mr. Duterte made the offer during his meeting with Chinese Premier Li Keqiang in Malacañang last week.
He also said that former Information and Communication Secretary Rodolfo Salalima, who resigned in September after complaining of “corruption and interference,” might “have prevented the earlier breakup of the duopoly.”
In a press briefing, Roque said offering China to become the third telco operator in the country “is the latest instance of the President proving that he has the political will to do what is necessary to benefit the Filipino people.”
“I repeat, the announcement is that duopoly, that telecoms duopoly is about to end,” he said.
No specific Chinese company has been lined up, according to Roque.
He said the President chose China because it had the capital and the technology to provide efficient telecom service.
“Consider also the proximity and the fact that we want to avail ourselves of as much economic advantage that we could arising from the renewed friendly ties with China,” he added.
Pierre Galla, cofounder of ICT advocacy group Democracy. Net. PH, said it was high time a third player entered the market to boost competition.
PLDT said it was the government’s prerogative to invite new players. “As for us, we welcome competition,” said PLDT spokesperson Ramon Isberto.
Eliseo Rio Jr., acting secretary at the Department of Information and Communications Technology (DICT), said a third player was welcome.
“In fact the more players the better. But there are constitutional limitations to foreign participation such as 40 percent ownership,” Rio said in a text message.
Industry players and experts have generally declined to comment, saying they first need to see how the Duterte administration would implement such a plan. One way is for a Chinese telco company to partner with a local player.
Philippine Telegraph & Telephone Corp. (PT&T), which has new owners led by Salvador B. Zamora II and Benjamin Bitanga, is in talks with potential foreign investors.
