Gov't to ‘surely resolve’ impasse on 3rd telco selection
MANILA, Philippines — Department of Information and Communications Technology Secretary Eliseo Rio Jr. on Tuesday vowed to resolve a stalemate over which model must be used in choosing the country’s third telecommunications player.
To break a longstanding duopoly and boost service, President Rodrigo Duterte invited foreign firms, backed by a consortium of Filipino businesses, to take a role in the country’s wireless communications market.
Malacañang had initially said the new major service provider would be named within the first quarter of 2018. But this target was hit with delays as the DICT and Department of Finance spar over which selection mode should be used.
The DICT wants the company with the highest committed level of service to be chosen as the third telco carrier. On the other hand, the DOF prefers to hold an auction for the frequencies, with a floor price of over P6 billion from the previously reported P36.58 billion.
In a statement, Rio announced that an oversight body that is deciding the third player selection process would meet on Friday, July 20, to vote on the formulation of the final Terms of Reference for choosing the new telco carrier and assignment of radio frequencies.
Both the DICT and DOF sit on the committee.
“Regardless, on Friday this will be surely resolved, one way or another,” said Rio, who reportedly vowed to resign if he fails to convince the oversight committee to adopt the DICT’s proposal.
At a stakeholders consultation last June, majority of 15 interested public telcos said the new service provider must be chosen based on a beauty contest instead of financial muscle flexing, a major victory for the DICT. Finance Secretary Carlos Dominguez III reportedly said the stakeholders’ rejection of his agency’s preferred method of selecting the new entrant came as “no surprise.”
The DICT has set a target of September or early October for naming a third player.
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