Palace: 3rd telco bidding transparent

MANILA, Philippines — Malacañang has defended the selection of the consortium of President Duterte’s major campaign donor as the provisional third telecommunications player in the Philippines, saying the bidding process has been transparent.

Mislatel, a consortium composed of Udenna Corp., a company owned by Duterte’s campaign donor Dennis Uy, its subsidiary Chelsea Logistics Holdings Corp. and China Telecommunications Corp., was declared the country’s provisional third telco player last week.

Three groups submitted bids but the two other bidders – namely SEAR Telecom and Philippine Telegraph and Telephone Corp. (PT&T) – were disqualified because of their failure to meet some requirements.

SEAR and PT&T have filed motions asking the National Telecommunications Commission (NTC) to reevaluate their bid documents and to allow them to compete against Mislatel.

Critics claimed Uy’s ties to Duterte had influenced the outcome of the bidding but officials maintained the allegations are baseless.

“I think the bidding for the third telco has been transparent,” Communications Group Secretary Martin Andanar told radio dwFM last Sunday.

Andanar described Uy as “a person who really persevered” and “one of the newest tycoons that we have in Philippine business.”

“I think Dennis should really serve as an inspiration to the aspiring entrepreneurs of the country and in Southeast Asia,” the official said.

Andanar also claimed that China Telecom, Uy’s partner, is capable of providing good service.

“China Telecom is a very big company. It has a very big portfolio in China and Hong Kong. They have so much capital and being the third telco of our country is not easy. There are so many bumps and humps and challenges ahead,” Andanar said.

The Department of Information and Communications Technology clarified that Mislatel was only declared the provisional third telco player and losing bidders could still ask the government to reconsider its decision.

Breaking the duopoly

It is about time the country designates a third telecommunications company that will provide Filipinos with much better and faster internet connection and break the duopoly enjoyed by PLDT Inc. and Globe Telecom.

“Regardless of which company is finally selected as the new major player, it would now be imperative for the two existing telcos to shell out a bigger capital expenditure as the third player is expected to present real competition,” said Rep. LRay Villafuerte of Camarines Sur.

The administration lawmaker said the third telco is expected to engage its “competitors in a price war in order to grab a sizable share of the country’s over 100 million subscriber base” since Filipino subscribers have been “reeling from costly yet sub par mobile phone services.”

Villafuerte said the third telco is expected to give PLDT and Globe “fierce competition” that would force them to somehow improve their services.

At the same time, he dismissed concerns Mislatel may be a security risk because of the presence of a foreign partner, reminding the public that Smart has ties with Japan-based NTT while Globe has as partner Singapore Telecommunications.

The group of politician Luis “Chavit” Singson has insisted on the validity of its claims against Mislatel after the congressional franchise holder of the provisional third telecommunications player refuted its allegations over the weekend. – With Delon Porcalla, Richmond Mercurio