Philippines third telco selection hits new roadblock

31 May 2018
Daily News

The Philippines government has hit yet another delay in its attempt to introduce a third major operator into the local market.

The oversight committee established last month to set the terms for the selection process has failed to approve the draft terms of reference, the Philippine Star reported.

While the committee had met on Monday to consider whether to approve the draft terms, four key issues were identified that will need to be resolved to ensure the third telco could effectively compete with incumbents PLDT and Globe Telecom.

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These include concerns over spectrum availability, the establishment of a common tower company and the lowering of interconnection rates.

The committee's delay could yet again push back the expected timeframe for selecting a third player to enter the market. Earlier this month, the government reportedly revealed that bidding is now not expected to be complete until September.

President Rodrigo Duterte has invited foreign operators to take the role of the market's third telco in collaboration with a consortium of local companies. The local or international company pledging the highest investment and level of service will win the beauty contest selection process.

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