Villar diversifying into telecoms

MANILA, Philippines – The group of former senator Manuel Villar Jr. is going into the telecommunications business, now dominated by Philippine Long Distance Telephone Co. and its mobile phone subsidiary Smart Communications, and Globe Telecom.

The Villars’ Streamtech Systems Technologies has applied for a congressional franchise “to construct, install, establish, operate and maintain telecommunications systems throughout the Philippines.”

Its application is now pending with the House of Representatives committee on legislative franchises.

The application is contained in Bill 3118, introduced by Romblon Rep. Emmanuel Madrona, whose brother, former congressman-governor Eleandro Jesus Madrona, belongs to Villar’s Nacionalista Party.

Palawan Rep. Franz Alvarez, who chairs the committee on legislative franchises, told The STAR Villar’s son Paolo is the “principal shareholder” of Streamtech.

He said his panel has so far held one hearing on Streamtech’s franchise application.

Documents the Villar firm has submitted to the committee show it has P30 million in paid-up capital.

This has prompted some members to question if such amount was sufficient to install telecommunications systems.

Company officials informed the committee that their firm would provide the necessary capital as the need arises.

In filing Bill 3118, Rep. Madrona said the present clamor among current and prospective customers of telecommunications companies (telcos) is for “efficient, dependable and affordable” service.

He said Steamtech would like to join existing telcos in responding to such clamor.

“Streamtech seeks to do its share to improve the telecommunications industry’s capacity to promote the common good and serve the general public,” he said.

He added that aside from other telecom services, the Villar firm would “establish an international gateway facility, provide broadband service and set up public data networks.”

Two weeks ago, the House approved on third and final reading a bill renewing the franchise of Smart for another 25 years.