Globe, PLDT-Smart welcome third telco player

Giants Globe Telecom and PLDT-Smart welcomed the new major player in the telecommunications industry, which is meant to break their so-called duopoly.

In a statement, Globe said it welcomes the new telco challenger "which is seen to help foster a healthy competitive environment and ultimately benefit consumers."

The National Telecommunications Commission (NTC) on Wednesday declared Mislatel Consortium as the country's "provisional" third telco. 

The consortium is composed of Davao businessman Dennis Uy's Udenna Corp., its subsidiary Chelsea Logistics Holdings Corp., and state-owned China Telecommunications Corp.

“We are glad for the smooth selection process undertaken by DICT and NTC. As previously and continuously stated, we hope the government will equally support the existing telcos like Globe, which continue to provide services to millions of Filipinos, and in the case of Globe, over 67 million total subscribers,” Globe general counsel Froilan Castelo said.

In a separate text message, PLDT-Smart spokesperson Ramon Isberto noted that the Pangilinan-led telco has been stating that the telecoms industry is liberalized.

"We welcome competition, including the entry of new operator through this selection process," Isberto said.

“Competition is the norm in a liberalized environment and will benefit our customers, the industry, and the country. We are ready to compete,” the PLDT-Smart spokesperson added.

The NTC will now scrutinize the commitment of the consortium to internet coverage and speed once its status is officially confirmed as new major player in the telecom industry.

The new player has the potential to open up new sources of revenue streams for telcos while providing consumers with more innovative products and services, according to Globe.

The Ayala-led telco also said it has taken a step forward to fulfill its plans to divest its tower assets.

"It has started the process of incorporating a separate tower holding company. This initiative will allow the third player to rapidly roll out its network and launch commercial operations," Globe said.

"It will also give smaller players the opportunity to scale up their business without the burden of high capital expenditures," it said. — RSJ/BM, GMA News