Change coming Linemen install antiquated telecom cables. In the standard of quick-developing technology, this should be a thing of the past once the third telco player starts operations. AL PADILLA

January 25th, 12:07am January 24th, 11:04pm Mario J. Mallari

Consumers’ problems of poor quality and the high cost of telecommunications services are expected to be addressed soon following the Securities and Exchange Commission’s (SEC) clearing of the equity structure of the third telco player Mindanao Islamic Telephone Co. (Mislatel) Consortium.

During yesterday’s Senate Committee on Public Services hearing on the third telco player, National Telecommunications Commission (NTC) Commissioner Gamaliel Cordoba said the SEC gave Mislatel the thumbs up in a 20 December 2018 ruling. SEC stated the terms of bidding agreement were found compliant with the constitutional provision on foreign equity ownership.

In Opinion 18-24, the SEC found the proposed equity structure in the bidding document submitted by Mislatel as compliant with the 40 percent foreign ownership limit among public utilities, such as telecommunications, electricity, water and transportation.

Mislatel is owned 40 percent by China Telecommunications Corporation Ltd., 35 percent by Udenna Corp. and 25 percent by Chelsea Logistics Holdings Corp.

Chelsea Logistics is a subsidiary of Udenna and both companies are owned by Davao-based businessman Dennis Uy.

In November 2018, the NTC confirmed Mislatel Consortium as the company which will challenge the duopoly of Smart Communications and Globe Telecoms in the telecommunications industry.

The company has 90 days to submit its business and rollout plans which are requirements for it to secure telecommunications frequencies from the NTC.

The consortium has committed to provide Internet speeds of 27 megabytes per second on the first year which would rise to 55 Mbps on the second year until the fifth year of its operations and eventually covering 84 percent of the population.

Good to go Department of Information and Communications Technology acting Secretary Eliseo Rio said Mislatel Consortium has resolved major concerns in being selected as the new major telco while Presidential Adviser on Economic Affairs and Information Technology Ramon Jacinto looks on. AL PADILLA

“We don’t want to be just the third telecommunications company, we want to be the best!”

This was how passionate Uy is in his bid to operate a telecommunications firm in the country.

At the Senate inquiry, Uy stressed that while he will be new in the telco business, he is willing to learn as a 20-year businessman engaged in various industries.

“Humility aside, we don’t want to be just the third telecommunications company, we want to be the best! A telco that is fast, affordable and, most importantly, secure,” declared Uy during a statement before the committee.

“Let’s work together to achieve world-class telecommunication to empower Filipinos and build the nation,” he added.

To highlight Mislatel’s passion to establish a world-class telco, Uy submitted to the Senate a copy of the company’s roll-out plan to achieve the goal.

At the same time, Uy vowed that national security will be protected if his company will be allowed to operate the telco, dousing concerns from various sectors about the entry of a Chinese partner of Mislatel.

“I support the aim of this committee to protect our national security and to ensure strict compliance with all laws… We will do our best to protect national security,” he said.

Uy also addressed allegations that Mislatel was given preferential treatment by the NTC in the selection process that declared the telecom firm as qualified.

“We did not violate any rule… We went through the long and proper processes… We went through the proverbial needle’s eye until the NTC chose us as new major player in the telecommunications sector,” he said.

As a businessman for more than 20 years, Uy said he religiously followed rules and regulations in running three listed companies in the Philippine Stock Exchange.

“My companies operate on the highest standards of accountability and this is something that we humbly assure this honorable committee,” Uy said.

He added it is high time to provide the country with a cheap, fast and excellent alternative to the so-called duopoly in telecommunication.

“This project underwent rigorous assessment. Let’s work together to achieve a world-class telco to empower Filipinos and build the nation,” he said.

Department of Information and Communications Technology (DICT) acting Secretary Eliseo Rio Jr. maintained that Mislatel consortium was the only qualified bidder to operate a third telecommunications company.

Rio, at the same time, stressed that the selection process of the NTC that declared Mislatel as qualified was the “most transparent.”

The DICT chief made the assertions following insinuations from opposition Sen. Antonio Trillanes IV that Mislatel consortium, headed by Uy, was given preferential treatment by the NTC.

Trillanes even went on digging on the P30 million campaign contribution of Uy, who is from Davao City, to President Duterte’s 2016 campaign which has been declared and repeated publicly.

“Whatever Dennis Uy did before or Mislatel, they were never considered in the selection. You saw for yourselves it was the most open, transparent selection processes,” Rio said after the Senate hearing.

“When we did the TOR (terms of reference), we did not see who was close to who. We just went by the documents. Mislatel was the only one that had it completed,” he added.

According to Rio, Mislatel still has to satisfy post-qualification procedures as a step to becoming the new third major telco.

Presidential spokesman Salvador Panelo said Mislatel legal counsel Adel Tamano had explained telco’s franchise can only be revoked should the State file a quo warranto petition against it.

“What I know about that is they had an explanation for that. The lawyer of that company issued a press statement. But they are disputing that claim,” Panelo, who is also chief presidential legal counsel, said of questions raised by some senators on the franchise of the firm.

Panelo, meanwhile, suggested that Mislatel could have changed control to another company which meant it continued to operate.