Miss Universe

Senators welcome possible entry of foreign telco player

Camille Elemia

This is AI generated summarization, which may have errors. For context, always refer to the full article.

Senators welcome possible entry of foreign telco player
But Senator Paolo Benigno Aquino IV says the focus should not be on China alone, as there are other foreign and local companies keen on entering the market

MANILA, Philippines – Senators welcomed President Rodrigo Duterte’s move to invite foreign players into the telecommunications industry in the Philippines but said the offer should not be limited to China alone.

Senate President Aquilino Pimentel III said it is high time for a 3rd player to spur competition and improve services for Filipinos. (READ: PH internet ‘no good’? Telcos, PCC react to Jack Ma)

“A 3rd telecommunications firm is exactly what our country needs to end a telco duopoly mired in mediocrity; a situation that has allowed them to hold the Filipino consumer hostage to poor communications and data services,” Pimentel said in a statement on Tuesday, November 21.

Duterte’s ally and party mate also lauded the President for showing “political will” to solve the longstanding issue.

Presidential Spokesman Harry Roque earlier said Duterte “offered” China the “privilege to operate the 3rd telecommunications carrier in the country.”

Senator Grace Poe, chairperson of the committee on public services, also welcomed the move.

“The entry of qualified foreign players into the telco market would be a welcome development. Healthy competition could lead to better services for the consumers,” Poe said in a statement.

But she pointed out that existing laws prohibit it, as the country’s Public Service Act bars majority ownership by foreign entities in public utilities.

Poe has filed Senate Bill 1441, seeking to amend the outdated law. She said she is set to hear the issue as soon as the chamber finishes debates on the tax reform bill and the 2018 budget.

The House of Representatives earlier approved a counterpart measure seeking to open industries like telecommunications, transportation, power, and water to more foreign ownership. 

Scrutinize deals

While welcoming the move, Senator Paolo Benigno Aquino IV, a member of the minority, said the focus should not be on China alone.

“Natutuwa tayo sa pagkilala ng Pangulo na kailangan nating pagandahin ang ating sektor ng telekomunikasyon sa pamamagitan ng kumpetisyon, subalit hindi tayo dapat malimita sa isang bansa lamang,” Aquino said in a statement.

(We welcome the President’s acknowledgment that we need to improve our telecommunications sector through competition but we should not be limited to just one country.)

Aquino said he has encountered companies from Japan and South Korea that have expressed interest in entering the Philippines’ telecommunications industry.

He added that local cable operators are also keen on competing with big companies. (READ: PCC to work with TransCo if telco joint venture proceeds)

Senator Sherwin Gatchalian, for his part, said the government “must strictly scrutinize” the proposals of interested companies.

“We must ensure that the terms of the agreement will benefit Filipino consumers above all. The deal must also be completely insulated from any possibility of corruption or impropriety,” Gatchalian said. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!
Face, Person, Human

author

Camille Elemia

Camille Elemia is a former multimedia reporter for Rappler. She covered media and disinformation, the Senate, the Office of the President, and politics.