PT&T signs agreement with Chinese firm for feasibility study

The Philippine Telegraph and Telephone (PT&T) Co. has entered into an agreement with a Chinese company to conduct a feasibility study for free wireless broadband services during natural disasters.

In a disclosure to the Philippine Stock Exchange on Tuesday, PT&T said it signed a memorandum of agreement with Chengdu Zhongxing Tiantong Technology Corp.

"The purpose of the agreement is to explore the feasibility of engaging in a project that will provide free wireless broadband services in designated public areas before, during and after the occurrence of disasters in any part of the country," the company said.

PT&T and Chengdou Zhongxhing will conduct a study on the feasibility of the project.

"Within an agreed period the parties will conduct a study of the feasibility of the project and thereafter discuss and agree on a definitive agreement to push forward the same," the company said.

The agreement will be effective for a period of 90 days from the signing of the contract.

"Actual participation of each party shall be discussed after the conclusion of the said study and will be reflected in the definitive agreement that maybe reached by the parties," PT&T said.

PT&T chairman Salvador Zamora earlier said the company intends to expand its fixed broadband business nationwide by entering in a joint venture deal with Chengdu ZhongXing and Guo Chang Assets Management Corp.

President Rodrigo Duterte said Tuesday he wanted the third telecommunications player from China to start providing services to consumers by the first quarter of 2018.

Duterte has instructed the Department of Information and Communications Technology and the National Telecommunications Commission to approve applications and licenses within seven days after complete requirements are submitted, Presidential spokesperson Harry Roque said

The Chinese government has chosen China Telecom Corporation Limited to enter the Philippines telecoms industry.

The Chinese firm must partner with a Philippine company as the 1987 Constitution mandates a 40-percent limit on foreign ownership in public utilities.

Zamora said PT&T was in preliminary talks with China Telecom to be the latter's local partner. —NB, GMA News