Mislatel gets green light

With only three opposing votes, the Senate yesterday gave the go-signal for the Mindanao Islamic Telephone Co. (Mislatel) consortium, headed by Davao-based businessman Dennis Uy, to enter the telecommunications industry as it adopted a resolution issued by the House of Representatives clearing the company’s franchise.

The Senate concurred with House Resolution 23 that formalized the sale of the controlling interest of Mislatel to Uy’s Udenna Corp. and Chelsea Holdings Corp. and the state-run China Telecommunications Corp.

Those who objected were Minority Floor Leader Franklin Drilon and Senators Risa Hontiveros and Panfilo Lacson.

Instead of Sen. Grace Poe, Sen. Francis Escudero defended the report of the Senate Committee on Public Services that conducted a public hearing on the matter.

During the interpellation, Drilon reiterated his stand that Mislatel’s franchise was deemed ipso facto revoked after it failed to operate since 1998 and questioned the transfer of shares from the original owners to the group of Nicanor Escalante.

Escudero, however, maintained the House of Representatives already discussed such matters and decided to approve the transfer.

“We are prepared to introduce… to cure any defects, if there are any, to the franchise,” Escudero said.

In the resolution, lawmakers noted the commitment of Mislatel to provide “world-class” telco service to Filipino consumers who have long been complaining of the very slow and poor Internet services.

“The NMP (new market player) is committed to providing Filipinos with unprecedented and unparalleled quality of telecommunications services, made possible only by the organizational unity, fiscal cooperation and technology transfer between and among Mislatel and its committed investors,” the resolution stated.

Udenna Corp. and Chelsea Logistics Holdings Corp. own 35 percent and 25 percent, respectively, while China Telecom holds a 40 percent stake. Mislatel will act as the franchise holder.

The consortium promised to deliver 27 megabytes per second (mbps) Internet speed for the first year of operation, to be improved further in the following years. It already submitted its rollout plan.

Two other bidders for the NMP, Philippine Telegraph & Telephone Corp. and the Chavit Singson-led SEAR Telecom, were disqualified.

Poe previously said even if the Senate gave approval to Mislatel, interested parties are not prevented from availing themselves of legal remedies in the courts.

She also stressed that Mislatel risks losing more than P25 billion in performance bond should they mess up with their commitments in the first year of their operation.

Department of Information and Communications Technology acting Secretary Eliseo Rio also stressed that any questions or defects to the Mislatel franchise could be cured through an act of Congress “because Congress gave the franchise in the first place, so that’s being studied right now.”

Poe previously said she sponsored the measure because of the public’s “desperation” to have a new player that promises better telco services and because she feels it would be “unfair” not to present it on the floor to allow senators to debate on the issue.