PCCI wants 3rd telco player to go to underserved areas

MANILA, Philippines — The nationality of the potential third player to break the “duopoly” in the country’s telecommunication industry is not a cause of concern for the Philippine Chamber of Commerce and Industry (PCCI), but the country’s largest business organization wants to be assured whoever is chosen will be able to significantly improve mobile and internet services, particularly in far flung areas. 

The Presidential Communications Operations Office last week announced that state-owned China Telecom, the largest telecommunications company in China, has been chosen to become the third player in the country’s telecommunication industry.

The decision came after President Duterte personally handpicked China to invest in the Philippines’ telecom industry, believing they would improve internet speed in the country which has been a constant complaint from  consumers.  

Concerns regarding security, however, have emerged alongside the decision saying that the entry of a foreign company would expose the Philippines’ data infrastructure to a state-run firm of China, which has a long-running territorial dispute with the country over waters in the West Philippine Sea.

 “I don’t see any problem with it being given to China. There is no issue for me,” PCCI president George Barcelon told The STAR in an interview.

 “On issues of security, we can always get a third party. As for issues on the architecture of the system, we can always ask other parties to check. Although they are the one implementing, we can always get consultants to double check our concerns,” Barcelon added.

The PCCI leader, however, wants the government to ensure that China Telecom would invest in far flung areas of the country as well as provide a clear timeline of its projects.

“Hopefully the company will receive a mandate from the President or the country saying that hey, we’re giving you this license but you need to have a timeline. A timeline for you to deliver the services that we need,” Barcelon said.  

“Also, I hope the government will mandate that there should be service in the far flung areas. At present, there are areas where the two service providers do not want to invest because business is not yet that big. The third player, once it enters, should be mandated to invest and set up in those areas,” he added. 

Barcelon said information and communications technology (ICT) is very critical as it serves as the lifeline of commerce tourism.

 “If I were a foreigner, our areas in the Philippines look good, but I may be hesitant to go, especially in the far flung ones because I don’t have a safety net. If something happens to me, I can’t call anyone because there is no cellphone or internet signal. When you go all over the world, their ICT infrastructure is okay. It is only here that it is not sufficient,” he said.

Duterte has long been calling for a third telco player in the Philippines so consumers can enjoy better mobile and internet service.