MANILA, Philippines – The local telecommunications industry will only need up to 3 players for the market to still be profitable, according to Presidential Communications Secretary Martin Andanar.
In an interview on dzMM on Sunday, January 14, Andanar said there is a need to “take into consideration the size of the Philippine market” before opening more slots for telco players.
“Sa palagay ko hanggang 3rd player lang para maging at least lucrative iyong merkado ng Pilipinas for these telcos and imagine mag-i-invest kayo ng 400 billion tapos apat, lima kayo so hindi rin kayo kikita, hindi necessary din iyong balik sa kanila ‘di ba? So 3 players for the Philippines could be enough at this point,” he said.
(I think we only need 3 players so the market in the Philippines can still be lucrative for these telcos. Imagine if you invest P400 billion and there are 4, 5 players, you won’t earn enough, you can’t get your investment back. So 3 players for the Philippines could be enough at this point.)
The Duterte administration has been aiming to end the duopoly in the local telco industry – dominated by PLDT and Globe Telecom – by encouraging foreign countries to invest. In November 2017, Duterte offered Chinese firms the chance to be the Philippines’ 3rd telco player.
All names in by March
Andanar said the names of interested companies are expected to be revealed by the end of March. (READ: Duterte wants China-backed telco provider in PH by early 2018)
“So binanggit sa atin na kailangan by February 19 ay nakapagpasa na sila ng kanilang terms of reference tapos after one month or end of March ay makapagbibigay na iyong mga interesadong parties ng kanilang interest na sumali sa bidding,” he said.
(We were told that they should pass their terms of reference by February 19 and after a month, probably by the end of March, interested parties would be able to express that they would join the bidding.)
So far, according to Andanar, companies from South Korea and Japan have expressed interest. (READ: If China telco deal doesn’t pan out, PH to tap other telco players) – Rappler.com
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