telecommunications companies

Duterte renews Dito Telecommunity franchise

Pia Ranada
Duterte renews Dito Telecommunity franchise
President Duterte signs a law renewing the telco's 25-year franchise

President Rodrigo Duterte signed a law renewing Dito Telecommunity’s telecommunications franchise for another 25 years.

Duterte signed Republic Act No 11537 on Tuesday, May 18, according to a copy of the law sent to media on that day.

With the renewed franchise, Dito Telecommunity can operate its telecom network until 2046. The franchise places it on firmer ground to compete with the two dominant networks, Globe Telecom and PLDT.

Dito Telecommunity, partly owned by Davao businessman and Duterte campaign donor Dennis Uy, was made the country’s third telco player during the Duterte administration.

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Dito Telecommunity now in Metro Manila

Dito Telecommunity now in Metro Manila

The telecom firm is a consortium composed of Uy’s Udenna Corporation and publicly-listed Chelsea Logistics, with Beijing-run China Telecom as its foreign partner. 

Experts and lawmakers have expressed concerns that Dito’s facility agreement with the Armed Forces of the Philippines to build cell sites in military camps might compromise the country’s cybersecurity. Dito Telecommunity and the Department of Information and Communications Technology have dismissed these fears as unfounded.

The Duterte administration has long touted the existence of a third telco player as a solution to slow internet speeds in the country. The company has promised to provide users a minimum internet speed of 51 megabits per second (Mbps) and vowed to cover 51% of the population.  – Rappler.com

Pia Ranada

Pia Ranada is a senior reporter for Rappler covering Philippine politics and environmental issues. For tips and story suggestions, email her at pia.ranada@rappler.com.