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Andanar names China Telecom as 3rd telco player
FILE: Communications Secretary Martin Andanar said China Telecom would invest in the Philippines to improve internet service in the country. (PCOO Photo)
The Presidential Communications Operations Office (PCOO) named on Sunday the Chinese firm that would serve as the third player in the country’s telecommunication industry.
Communications Secretary Martin Andanar said China Telecom would invest in the Philippines to improve internet service in the country.
“The Chinese government has selected a company that will invest in the telco (industry) of our country. It is China Telecom, the largest telecommunications company in China,” Andanar said over dzBB.
As of the end of 2016, the telco firm said they have about 215 million wireline broadband subscribers.
Earlier, President Rodrigo Duterte has offered China the “privilege” to operate as a third key player in the telecommunications industry to break the current duopoly in the country.
Presidential Spokesperson Harry Roque said the offer was made during Duterte’s meeting with Chinese Premier Li Keqiang, noting the ‘seriousness’ of the president about the entry of a third telecommunications carrier.
“During the bilateral talks between President Duterte and the Chinese Premier, President Duterte offered to the People’s Republic of China the privilege to operate the third telecom’s carrier in the country,” Roque said.
As of now, Globe Telecom, Inc. and PLDT, Inc. are the only service providers in the country.
Also at present, the Philippines has one of the slowest and most expensive internet speed in Asia Pacific, paying $40.96 for 13.41 Mbps.
The country also ranked 69th out of 77 countries when it comes to long-term evolution (LTE) availability and 74thout of 77 nations in terms of LTE speeds, according to a report released by coverage wireless mapping company OpenSignal this month.
However, Roque said that with the end of telecom’s duopoly because of the entry of a new player, consumers will attain “better telecommunications.”
Meanwhile, Andanar said China Telecom has to find a local partner as the Constitution confines foreign ownership of a public utility to 40 percent.
“The government is fast-tracking this because our countrymen are already irritated by dropped calls and slow internet. This is the reason why the President opened the doors to a third player,” Andanar added.
Senator Win Gatchalian, on the other hand, is optimistic that the Lifetime Cellphone Number Act will encourage entry of new players and stimulate healthy competition within the telecommunications industry.
“The regulator and the policy maker, we are in harmony to make it free. But we will include a provision in the law to let the NTC determine who will absorb the costs, if ever. I think that should be left with the regulator to determine. It is too fluid to include in the law, but we will give the NTC flexibility to determine…but from a consumer’s standpoint, it will be free,” he said.
The Lifetime Cellphone Number Act (Senate Bill No. 1237) aims to provide convenient movement of mobile subscribers from one service provider to another while retaining usage of their existing cellphone numbers, whether prepaid and postpaid. This flawless subscriber-transfer among telco players is seen to generate improved services with better deals to offer which will greatly benefit consumers.
