House panel approves transfer of Mislatel’s controlling interest to new consortium

The House Committee on Legislative Franchises on Tuesday approved a measure seeking the transfer of the controlling interest of the Mindanao Islamic Telephone Company, Inc. (Mislatel) to its new consortium selected as the provisional third telco player in the country.

During its meeting, the chamber voted to approve Concurrent Resolution 23, authored by Quirino Representative Dakila Carlo Chua, which aims to approve the transfer, sale, or assignment of the controlling interest of Mislatel Inc. to businessman Dennis Uy's Udenna Corp., its subsidiary Chelsea Logistics Holdings Corp., and state-owned China Telecommunications Corp.

In its Binding Bidding Agreement with Mislatel, Inc., Udenna, Chelsea, and China Telecom will subscribe into the increase in shareholdings of Mislatel, resulting in the three companies' owning the majority and controlling interest in Mislatel.

But according to RA 8627, which granted the franchise to Mislatel Inc. to maintain and operate a wireless telecommunications system in the country, its controlling interest cannot be transferred to any person, company or entity without prior approval of the Congress.

House panel chair Franz Alvarez said this is exactly why there is a measure allowing the transfer of the controlling interest to the three companies.

"Sila, humihingi ng permit, which is tamang process, permit sa pagbili ng Mislatel kasi yun naman ang provision sa franchise," he said in an interview with reporters.

"Kapag merong sale, babalik talaga dito para humingi ng permission para payagan ng Congress which is yun naman ang ginawa nila. Yun ang kailangan natin i-determine," he added.

The panel approved the measure only after two meetings, which was held on Monday and on Tuesday.

Alvarez, however, denied that the panel railroaded the approval of the measure.

"Lahat ito dinaan namin sa tamang process, wala namang ni-railroad, walang minadali," he said.

Mislatel Consortium has committed to deliver a minimum average broadband speed of 27 megabits per second (mbps) in its first year of operation and 55 mbps by its fifth year. — BM, GMA News