Naming third telco hits another delay

MANILA, Philippines — Authorities are yet to agree on the final criteria for selecting the Philippines’ third major telecommunications player, causing a delay in the entry of the new service provider that is set to compete with a longstanding duopoly.

According to the Department of Information and Communications Technology, or DICT, an oversight committee formed by President Rodrigo Duterte has yet to approve the draft Terms of Reference for the selection process.

The DICT said the government-led committee convened last May 28 to zero in on “four key issues” that must be resolved first to ensure that the upcoming telecom player could effectively compete.

The oversight committee discussed concerns on the frequency spectrum, the establishment of common tower policy, commercialization of the National Grid Corporation of the Philippines – Transco Dark Fiber and lowering of interconnection rates, the DICT said.

“Once these major issues have been fully resolved, the draft Terms of Reference will be revised, if necessary, and shall at once be published to gather comments and inputs from all stakeholders,” said acting DICT Secretary Eliseo Rio Jr.

“We will leave no stone unturned in providing better telecommunication services to the Filipino people the soonest time possible,” Rio added.

To break a duopoly and boost service, Duterte invited foreign firms, backed by a consortium of Filipino businesses, to take a role in the country’s wireless communications market.

The company with the highest committed investment and level of service for the next five years will be selected as the new telecom provider. Meanwhile, major players PLDT and Globe say they welcome the competition.

Rio earlier said the deadline for naming the new player depends on the release of the TOR. Malacañang had initially said the third telecom would be announced within the first quarter of 2018.

But Rio had reportedly assured the public that the announcement would happen “definitely before the end of the year.”