China Telecom has formally signed the agreement to create Mislatel, the joint venture that will become the Philippines' third mobile operator, committing to invest $5.4 billion in the venture.
The agreement with local conglomerate Udenna Corporation was signed last week in Beijing, CNN Philippinesreported yesterday.
China Telecom teamed up with Udenna Corporation, consisting of businesses owned by local tycoon Dennis Uy, to jointly submit an application in the Philippines' new major player selection process in 2018.
A company owned by Uy, also known as Mislatel, was granted a congressional telecommunications franchise in 1998, and the joint venture plans to use this franchise to operate.
The joint venture's entry in the market had the support of president Rodrigo Dutertre, but doubts were raised over the validity of this franchise due to Mislatel's failure to launch services within the required window. But in February, the Philippines' senate approved the transfer of the franchise to the joint venture.
But due to delays receiving the required approvals to operate, Mislatel last week revealed plans to postpone its planned launch date from late 2020 to early 2021.
Image: iStock Photo