DICT's preliminary conference on the selection process for the third major telco player on Revu Philippines

Selection of 3rd major telco in PH might be delayed

In Business by Alora Uy GuerreroLeave a Comment

It seems that the selection of a third major telecommunications player in the Philippines will be delayed.

Lamenting the state of the internet in the country, President Rodrigo Duterte in December 2017 instructed the Department of Information and Communications Technology and the National Telecommunications Commission to fast-track the entry of a new player for the benefit of the public. He said it should be operational by end-March 2018.

During the DICT’s first public hearing, however, potential entrants said that the timeline presented to them is tight.

SEE ALSO: Globe vs PLDT vs Converge ICT: Our experience so far

The government agency, together with the NTC, will issue the final memorandum circular containing the terms of reference for the selection process by February 19. Aspiring telcos — which must not be a subsidiary or affiliate of major players PLDT and Globe Telecom and must have a valid congressional telecommunications franchise — will then be given until March 27 to submit bid documents. Announcement of the winning bidder is slated for April 2.

The DICT, together with the NTC, will issue the final memorandum circular containing the terms of reference for the selection process by February 19. Aspiring telcos will then be given until March 27 to submit bid documents.

Addressing DICT acting chief Eliseo Rio Jr, a G. Telecoms representative said that half of February will already be gone because of Chinese New Year. “We are in the process of talking to our foreign partners. But this is a $300-billion investment, so maybe you can tell the President to give us enough time.”

Former NTC commissioner Ronald Solis agreed that the timeline is tight. He added, “Haste makes waste. If we take a shortcut, there might be some legal challenges that will come up later. Instead of us proceeding at a faster speed, any legal question might hamper the process.”

‘If we take a shortcut, there might be some legal challenges that will come up later,’ former NTC commissioner Ronald Solis said. ‘Instead of us proceeding at a faster speed, any legal question might hamper the process.’

“The President is a reasonable guy. I’m sure we can take a good, second look at the timeline,” Solis stated further.

Rio promised to take the issues up with Duterte in their next Cabinet meeting. “If there will be an extension, it might be for up to two months only,” he said.

READ ALSO: Why PH gov’t can’t be 3rd telco player some think it would now be

Three consortiums led by PT&T [Philippine Telegraph & Telephone], Now Corporation, and Converge ICT Solutions have shown their interest in joining the bidding.

Three consortiums led by PT&T, Now Corporation, and Converge ICT Solutions have shown their interest in joining the bidding.

However, Rio admitted to us on the sidelines of the preliminary conference that there are no official bidders yet.

“Wala pa [There’s none yet],” he confessed. “Gusto nila ‘tong sikreto-sikreto. Doon lang sa pagbagsak nila ng documents natin malalaman. [They want secrecy. We’ll know when it’s time to submit the needed documents.]”

It was announced during the consultation that the DICT is looking at assigning frequencies to the bidder with the highest committed investment for the first five years. However, to prevent consortiums from auctioning unreasonably high, there will be a performance bond. “This is to ensure that only those who are serious will join the auction,” Rio explained.

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Alora Uy Guerrero

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Editor-in-chief: Alora Uy Guerrero has 22 years of experience as an editor for print and digital publications such as Yahoo. She took time off journalism to manage OPPO’s digital-marketing campaigns. When not busy with her babies, she’s working on Revü, a passion project — or probably traveling or obsessing over her favorite bands, movies, TV shows, and basketball teams.