DICT issues revised policy guidelines for new telco player’s debut

MANILA, Philippines — The Department of Information and Communications Technology has revised its policy guidelines for the entry of a new player that will challenge a longstanding duopoly in the country’s telecommunications industry.

President Rodrigo Duterte had invited foreign firms, backed by a consortium of Filipino businesses, to take a role in his country’s wireless communications market to stir up competition.

Based on Memorandum Order No. 002 signed by DICT Officer-in-Charge Eliseo Rio Jr. last April 13, potential entrants must have paid in capital of at least P10 billion “to prove financial capability.”

The capital requirement was not indicated in Memorandum Order 001, which was released in January.

The DICT previously said interested party should have a net worth of at least P10 billion, a requirement that some stakeholders rejected as it would supposedly “eliminate players” that can compete with incumbents PLDT Inc. and Globe Telecom Inc.

Other rules

Under the revised rules, those aspiring to be the third telecom player must have experience in provisioning, delivery and operations of telecom services for the last five years to be qualified.

An applicant must also hold a congressional franchise and should have no outstanding liabilities with the National Telecommunications Commission as of January 31.

The company with the highest committed investment and level of service for the next five years will be selected as the new telecom provider.

Last month, Duterte ordered the creation of an oversight committee that will ensure an “integrated and transparent” entry of a new player in the country’s telecom market.

Rio earlier said his department has a “self-imposed timeline” of choosing the industry’s new telecom carrier before Duterte delivers his next State of the Nation Address in July.

The DICT will soon release a Memorandum Circular containing the Terms of Reference for the selection of the telecom challenger and assignment of radio frequencies to the winning bidder.