Five prospective bidders show up for telco search
Five prospective bidders paid a non-refundable P1 million each on Monday for documents that would allow them to participate in the government’s search for a challenger to the PLDT-Globe duopoly.
Acting Information and Communications Technology chief Eliseo Rio said he was “happy with the first day response”, adding that “it shows there is real interest and our [terms of reference have been]… found fair and reasonable”.
Chief Eliseo Rio
The prospective bidders were identified as Mindanao-based TierOne Communications International, Inc., Dennis Uy-led Udenna Corp., Norway’s Telenor Group and homegrown NOW Telecom Co. Inc.
The identity of the fifth firm, believed to be a local company, was being withheld upon request, National Telecommunications Commission (NTC) officials said.
Former Ilocos Sur governor Luis “Chavit” Singson, whose LCS Group of Companies has partnered with TierOne, went to the NTC office and told reporters that “many” foreign firms would be joining the consortium.
Representatives from the other prospective bidders declined to issue statements.
At a media briefing late on Monday, NTC Commissioner Gamaliel Cordoba said he was bullish that more groups would join the search as those “who have been vocal” had yet to buy selection documents.
“There maybe others that downloaded it but haven’t paid yet,” he said.
Participants can opt to get the selection documents via the NTC website and they have until 10 a.m. on November 7—also the final day for the submission of documents —to pay.
Still to be heard from are Philippine Telegraph and Telephone Corp., Transpacific Broadband Group International, Inc., Converge ICT Solutions and Easycall Communications Philippines, local firms previously reported to be weighing a third telco bid.
Prospective foreign players also unaccounted for at present include China Telecom, Korea Telecom, LG, KDDI Corp., AT&T and Vodafone.
Asked to comment on the turnout, Summit Securities, Inc. President Harry Liu said the entry of a new major telco player would provide “more competition, better prices and services.”
PNB Securities, Inc. President Manuel Antonio Lisbona said a new carrier would pose a significant threat to Globe Telecom and PLDT, Inc. if it “will be able to address the gaps … [such as]poor customer services, slow/intermittent internet or mobile data.”
“You could expect the two incumbent players to lose market share and consequently hurt them in terms of profitability,” he added.
“While the third player will have to do a lot of catching up, it already knows the areas upon which to capitalize and exploit,” Lisbona continued.
The Department of Information and Communications Technology and NTC will choose the winning bidder based on commitments covering national population coverage, minimum average broadband speeds, and operating and capital expenditures over a five-year period.
The third telco is expected to be named before the end of the year.
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