Villar firm backs out of race for 3rd telco

MANILA, Philippines — AMA unit takes over Villar-owned Streamtech Systems Technologies Inc. has decided to back out of the race for the third telco slot, just days after President Duterte approved the company’s 25-year congressional franchise.

Manuel Paolo Villar, chairman of Streamtech parent Prime Asset Ventures Inc. (PAVI), said the company would instead focus on internal expansion.

“After extensive discussions by management, Streamtech has decided not to proceed with the current bidding for the third telco and focus on our internal expansion programs and strategies,” he said.

Meanwhile, AMA Telecommunications Inc. (AMATELCO), a subsidiary of AMA Education System that pioneered IT education and owned by Amable Aguiluz V., is preparing to join the bidding for the 3rd major telco player.

“Yes, we bought the bidding documents to officially express our interest together with our Middle Eastern partners with technical and financial experience,” AMATELCO president and former congressman Felizardo Colambo said.

AMATELCO was granted in July 2016 a 25-year congressional franchise to construct, install, establish, operate and maintain for commercial purposes and in the public interest, wire and/or wireless telecommunications system in the Philippines.

Colambo said it will participate and bid as a member of a consortium of investors with prospect of delivering to consumers the highest committed level of service and lower subscription cost.

“If selected, our commitment is to build telecom infrastructure up to the farthest barangays in the Philippines which is more than compliant to the terms of reference of the bid,” he pointed out.

The submission and opening of bid proposal is scheduled on Wednesday, Nov. 7, 2018.

Other companies that have purchased bid documents for the third telco slot include China Telecom Corp., Mobiltel Holding GmbH, Telenor Group, LCS Group of Companies with TierOne Communications, Udenna Corp., NOW Telecom, PT&T Corp. and at least two more undisclosed bidders.

With Streamtech no longer vying for the third telco slot, it is seen focusing on developing a fixed-line network for the Villar Group’s subdivisions.

The Villar family’s businesses span a wide range of industries — from real estate through Vista Land & Lifescapes Inc., memorial lots and death care through Golden Bria Holdings Inc., malls through Starmalls Inc., water distribution through PAVI and retail through All Value Holdings Corp.

The group is also expanding its empire into gaming, industrial leasing and infrastructure as the family hopes to hitch a ride on the country’s booming economy.

On gaming, for instance, the group plans to put up a casino on a 1,000-hectare property in Dasmarinas, Cavite.