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Business

Dito likely to miss technical launch

The Philippine Star

MANILA, Philippines  — Third telecommunications player Dito Telecommunity is likely to hit the first of its two allowed “strikes” within its five year-commitment period as disruptions brought about by the coronavirus disease 2019 (COVID-19) pandemic has prevented it from completing the necessary number of cell sites in time for next week’s deadline.

In a Senate hearing yesterday, Dito chief administrative officer Adel Tamano said of the 1,300 cell towers the company is currently building, only 300 have been completed.

He said the others are in still various stages of development.

“To get the 37 percent coverage that is our requirement under our CPCN  (certificate of public convenience and necessity), we need 1,300 towers,” Tamano said.

“The COVID and lockdowns have prevented us from our full rollout. With the subsequent easing of the different lockdown situations, we are doing our best to get back on track so that we can get the 37 percent first year requirement under our CPCN completed,” he said.

Within the year, however, Tamano said Dito hopes to finish 2,000 towers which will exceed the 37 percent requirement under its CPCN.

Richmond Mercurio

Eliseo Rio, former undersecretary of the Department of Information and Communications Technology who led the selection of the third telco player, said Dito is allowed six months to correct any deficiencies, but missing the upcoming July 8 deadline would already be considered as strike one for the company.

Within its five-year commitment period, Rio said they are only allowed to have two strikes, with the third one resulting in its ejection as the country’s third major telco player.

“Definitely they are saying that they could not have the 1,300 finished by July 8, that is already next week, but definitely it will be finished before December 31 and that is still within the requirements or provision of the terms of reference,” Rio said during yesterday’s hearing.

“If they could not comply by July 8, then that is their strike one. If sometime in the future they cannot again comply, that would be strike two. And within the five year period the next non-compliance would forfeit their performance bond,” he said.

Dito is a consortium composed of state-owned China Telecom and Dennis Uy’s Udenna Corp. and Chelsea Logistics and Infrastructure Holdings Corp. It received its CPCN from the NTC in July 2019 to operate as the country’s third major telco.

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