Udenna-China Telecom lone bidder left for third telco

MANILA, Philippines — Only one bid, by a consortium by Udenna Corp.-China Telecom, to be the third telco in the Philippines managed to get past a selection committee that disqualified entries by two other aspirants.

The bid by Sear, a consortium by Chavit Singson company LCS and Tier1, was disqualified by the National Telecommunications Commission on Wednesday afternoon.

Selection Committee announces that only Udenna’s submission got past first evaluation and will now proceed to second stage which is the detailed evaluation. (via @josebimbosantos)

— ONE News PH (@onenewsph) November 7, 2018

READ: Chavit-led group boosts bid for 3rd telco slot

According to the selection committee, Tier1 did not submit the required participation security and could no longer continue on.

Tier1 was one of three firms who submitted their bidding documents this morning before the 10 a.m. deadline in hopes of becoming the Philippines' third major player. 

Three bidders

The entry of the final three bidders — out of an original 10 groups who bought bid documents —  comes two years after President Rodrigo Duterte said he would open up the Philippines to a third telco player in order to improve internet speeds. 

Mislatel, the first group to submit a bid, is a joint venture between Davao businessman Dennis Uy's Udenna Corporation, its subsidiary Chelsea Logistics Corporation, and China Telecommunications Corporation.

The other player, Philippine Telegraph and Telephone Corporation (PT&T), had sued the NTC for reportedly denying certification that required 10-year experience in operating a telecom business on a "national scale." 

PT&T was also disqualified for failure to submit a certificate of technical capability. 

Selection committee also disqualifies PT&T for absence of certification of technical capability. (via @josebimbosantos)

— ONE News PH (@onenewsph) November 7, 2018

Officials of PT&T said the selection process is “discriminatory” against local bidders, particularly the NTC’s clarification that a foreign telco company’s “regional operations” in its home country may qualify as service on a “national scale” — a definition that doesn’t apply to domestic firms.

Both disqualified firms plan to appeal their disqualification.

The commitee's review of documents and requirements is ongoing. 

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