Duterte warns courts from interfering in entry of third telecom player

MANILA, Philippines — President Rodrigo Duterte has warned courts from interfering in the entry of a third telecom carrier in the country by issuing halt orders in a bid to fast track the arrival of the company.

Duterte last month invited China to be his country’s third telecom operator in a bid to break a longstanding duopoly that has angered consumers in a nation said to have the slowest internet speed in the Asia Pacific.

According to presidential spokesperson Harry Roque, the president had instructed two executive agencies to ensure that a new telecom provider will be up and running by the first quarter of 2018.

“I do not want Courts to interfere and prolong this process. Do not issue any TROs (temporary restraining orders) or injunctions,” Duterte was quoted as saying by Roque.

“This is a matter of national interest for the benefit of the public,” he added.

The Palace earlier revealed that China Telecom would become the third player in the country's telecom industry, backed by a consortium of Filipino businesses.

The firebrand leader had previously said he was ready to defy the judiciary, a co-equal branch of the executive, if it delays the implementation of government projects.

He had also warned that a constitutional crisis would ensue if he no longer recognizes the decisions of the courts.

In a press conference, Roque said Duterte had directed the Department of Information and Communications Technology and National Telecommunications Commission to approve all applications and licenses within seven days upon submission.

"If it is not approved within seven days, it is deemed approved. That’s how serious the president is on the entry of a third telecoms player," Roque said.

Duterte earlier threatened incumbent providers PLDT Inc. and Globe Telecom Inc. with new competition from China if they do not shape up.

Last year, PLDT and Globe together agreed to buy conglomerate San Miguel Corp. out of the sector for $1.5 billion, pledging to invest heavily to boost internet service. The acquisition was the country's biggest corporate transaction in nearly three years.

The Court of Appeals, in a decision dated October 18, ordered the Philippine Competition Commission to permanently stop its review of the deal and recognize its validity.

Meanwhile, moves to open up the Philippines’ telecom industry might face some challenges. Under the Constitution, foreign investors are only allowed up to 40 percent on certain businesses and industries.

The Duterte administration has been working on easing foreign ownership limits by relaxing the Foreign Investment Negative List (FINL), particularly in the areas of retail trade, practice of professions, public utilities and infrastructure contractors.

Restrictions on foreign ownership, however, cannot be all lifted administratively as several prohibitions need legislative action.

READ: NEDA pushes maximum easing of foreign ownership limits