Issue the necessary permits and no restraining orders.
These are the orders given by President Duterte to all concerned agencies—and even the courts and local government units (LGUs)—to hasten the entry of China Telecommunications Corp. as the country’s third telecommunications company player.
In a letter to Information Acting Secretary Eliseo M. Rio Jr., the President directed the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC) to hasten the processing of China Telecom’s papers. The Beijing-based telecom company was selected by China to challenge the duopoly of Globe Telecom Inc. and PLDT Inc. in the country.
“I have instructed the DICT and the NTC to fast-track the entry of the third telecom player to foster competition in the market. I want this implemented during the first quarter of 2018,” Duterte said.
He instructed the NTC to draft the terms of reference for the bidding of frequencies, and told all national and regional government agencies, including LGUs, to issue the required permits within seven days upon completion of requirements.
The same process must be applied to incumbent telecom players Globe and PLDT.
“If the permits are not issued within seven days, the permits are deemed approved,” he said. He also warned the courts not to intervene in the government’s efforts to bring in a third telecom carrier.
“Do not issue any TROs [temporary restraining orders] or injunctions. This is a matter of national interest for the benefit of the public,” the President cautioned.
According to Presidential Spokesman Harry L. Roque Jr., China Telecom will still have to find a domestic partner in compliance with the restrictions on foreign ownership. Under the law, foreign investors are allowed to own up to 40 percent of public utilities, including telco services.
“They will have to be observed; and I think the scheme that they agreed upon is, while China Telecom will have 40 percent, there will be a consortium of Filipino companies that will own 60 percent,” Roque said.
He added the DICT has vowed to be transparent in awarding the frequencies, as well as in the entry of China Telecom. On top of this, Roque said the government will look into security issues that might arise in allowing a foreign entity to operate a telecoms carrier.
“Right now, all I can say is we’re beefing up. We’ve given priority to our cybersecurity and I’m sure there would be measures to protect us, to protect our privacy and our national security interests,” the Palace official said.
In his bilateral meeting with Chinese Premier Li Keqiang in November, Duterte tendered to China the privilege to operate the third telecom carrier in the country. The offer was made to challenge the Globe-PLDT duopoly, which the government has slammed for providing consumers expensive yet slow Internet service. According to Akamai Technologies’s “State of the Internet Report” for the first quarter of 2017, the Philippines recorded the lowest average connection speed at 5.5 megabits per second among Asia-Pacific countries. However, it forecasts the country may see improvements in the coming years with the implementation of a national broadband plan estimated to cost to as much as P200 billion.