Government releases final selection rules for 3rd telco player
MANILA, Philippines — The Philippine government on Friday, September 21, released the much-awaited final rules for the selection of the country’s new telecommunication player, as it seeks to improve services and break a long-standing duopoly.
Under the 27-page memorandum circular, the company with “highest committed level of service” will be picked as the country’s new major service provider. The circular will be effective 15 days after its issuance, or on October 6.
Among the selection criteria, national population coverage was assigned the largest weight at 40 percent, followed by capital and operational expenditure, whose weighting has been reduced to 35 percent from the previous 40 percent.
Meanwhile, the final version of the selection rules gave a 25 percent weighting on the minimum average broadband speed criterion, higher than 20 percent assigned in the draft document.
Firms will be given until November 5 to submit their bids. According to the Department of Information and Communications Technology, the government is expected to name the new entrant in December this year.
President Rodrigo Duterte had invited foreign firms, backed by a consortium of Filipino businesses, to take a role in the country’s wireless communications market to stir up competition.
Incumbents PLDT and Globe said they welcome the new telco challenger.
Malacañang had initially said the new player would be named within the first quarter of 2018. But this target was hit with delays after the DICT and Department of Finance were locked in a stalemate on which selection mode should be used.
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