President Rodrigo Duterte has ordered the Department of Information and Communications Technology and the National Telecommunications Commission to hasten the entry of a ‘third player’ in the Philippine telecommunications industry by the first quarter of 2018.
“I have instructed the DICT and the NTC to fast-track the entry of the 3rd Telecom Player to foster competition in the market. I want this implemented during the 1st quarter of 2018,” Duterte said in his directive.
“The NTC should start putting together the Terms of Reference for the bidding of all remaining telco frequencies,” he added.
Duterte likewise instructed all national and regional government agencies and local governments to issue the required permits within seven days upon complete submission of requirements.
“This should also be the case for permits of incumbent telecom players. If the permits are not issued within seven days, the permits are deemed approved,” the President said.
Duterte also warned courts from interfering and challenging the planned approval of the telecom ‘third player.’
“I do not want the courts to interfere and prolong this process,” Duterte said.
“Do not issue any TROs or injunctions. This is a matter of national interest for the benefit of the public,” he added.
In a Palace news briefing, Presidential Spokesman Harry Roque said that the move to speed up the approval of the bill shows how serious the President is on the entry of a third telecoms player.
Just last week, the Palace announced that Chinese state-run China Telecom Corp. is poised to become the Philippines’ third telecoms player, in a bid to stir up competition in an effort to boost notoriously poor Internet services.
During a recent bilateral discussion with Chinese leaders, Duterte offered Beijing the “privilege” of challenging a longstanding duopoly dominated by PLDT-Smart and Globe Telecom.
Roque admitted the agreement was being rushed, but allayed security concerns over the entry of a foreign company in telecommunications.
“It’s not as if foreigners don’t have access right now,” Roque said.
“The minority share owners of our providers are also foreign, so there’s always a foreign partner involved,” he said, referring to the country’s telecoms providers whose problematic reception and slow internet service often draw complaints,” he added, assuring that the restrictions provided in the Constitution about a foreign entity entering the local market would have to be observed.
While China Telecoms will own 40 percent of the provider, a consortium of Filipino companies must own the remaining 60 percent of the new firm, he said.
Roque also said the DICT gave the assurance that “they will absolutely be transparent in the bidding process.”