3 firms keen on forming partnerships to become 3rd telco player —DICT

At least three firms have expressed interest to form separate consortia to become the country's third telecommunications player, Department of Information and Communications Technology (DICT) officer-in-charge Eliseo Rio said Wednesday.

"Tatlo ang nag-show ng interest these are PT&T (Philippine Telegraph & Telephone), Now Corp., and Converge ICT," Rio told reporters on the sidelines of the preliminary conference and consultation for selecting a third telco in Quezon City.

The DICT official said that each of the three companies will be the leader of its own consortium to be formed with both local and foreign partners.

Rio, however, said the three players' expression of interest to each form a consortium was not yet official as the DICT had to wait for final bidding documents.

"So far, wala pa talaga siguro that will be part of the system na gusto nila ito isikreto e doon na lang malalaman sa pagbagsak nila ng bids," he said.

During the consultations, Rio said the winning bidder must have the “highest committed investment for the next five years.”

He said these commitment should be secured with a "performance bond."

Rio said the terms of the performance bond had yet to be drafted by the DICT, taking in the suggestions from interested bidders.

"But putting a bond is to ensure that whoever wins is really serious to be the third telco player kasi they will be punished if they will fail to deliver," the DICT official said.

Interested particpants also must posses a valid congressional telecommunications franchise, not a subisidiary or affiliate of either Globe Telecom Inc. or PLDT Inc.

"For them to be able to compete they must at least roll-out roughly $3 to $4 even up to $5 billion," Rio said.

The DICT will come up with the final terms of reference for the selection of a third telco player on February 19.

The country's telecom industry is considered a duopoly dominated by rivals PLDT Inc. and Globe Telecom Inc., prompting the Duterte administration to call for a third telco player to improve services and lower costs on the part of consumers. —NB, GMA News