Sunday , June 4 2023

Philippines invites new entrants to transform the troubled telecommunications industry


The winner will be valued more than the amount invested, they must also undertake to provide a minimum of Internet speed and coverage for most people.

Research has shown that the Philippines has occasionally led the world by sending text messages through Facebook and posting messages.

According to a social media management company, We Are Social and Hootsuite, a 2018 report to Filipinos on average spent almost four hours a day in social media, more than any other country.

The 2014 Magazine, the Manila Makati City, which is the world's "home-grown" capital with the largest domestic imprint of social media, and before mobile data was widely available, Filipinos were the world's largest text-makers, sending in 2007 on average billions of SMS messages every day.

In addition, only 56 percent of Filipino mobile users are joining 3G or LTE, and more than 90 percent of them are prepaid customers, not contracts.

"Cellular space is in high demand. In addition, broadband broadband connection at home, landline and cable is very low," said Pierre Gall, Information Technology Advocacy Group "Democracy.NET.PH." co-founder

"There is a huge potential for growth … this is the reason why foreign players have become interested."

The third license will be awarded on the basis of the highest acceptable level of service (HCLOS). So far, ten companies have expressed interest, while others can still join offers.

Of the 10, Norway has Telenor operating in eight countries, including Thailand, Malaysia and Myanmar, and China Telecom. Duthert has favored a Chinese state-owned company, despite concerns from minority legislators that it poses a threat to cyber security.


This year, for example, Now Corp., Easycall and Transpacific Broadband TBGI.PS, domestic telecommunications and Internet resources used to benefit have grown by 609 percent, 313 percent and 211 percent this year, compared to a wider index. PPI increased by 6 percent.

Last year, Philippine Telegraph & Telephone Corp. told Reuters that it wanted to engage in Chinese companies, while Vietnam's Viettel confirmed Reuters its interest in the third license in August.

Philippine economic ministers have also tried to prosecute British Vodafone. So far, local companies PT & T, Converge ICT and TierOne Communications have confirmed that they will submit bids.

Eliseo Rio, the telecommunications minister and 32-year-old military communications veteran, said the new player could only transform this industry for two years using new technologies, infrastructures and fixed-line services, for which the duopoly was not motivated to provide.

"It really will challenge them. Currently, Globe and Smart do not actually really increase their services for market forces," Rio told Reuters in a recent interview.

"People really want to be the third telecommunication network."

If the experience of two existing players is something that goes into the market, there will be no easy sailing.

Globe and Smart argue that this year they are investing in significant improvements of $ 950 million and $ 1 billion respectively, but this is hampered by the weak regulatory framework, which means that local governments make up their own rules, and a small petition can stop everything.

It may take a year to build one telecommunication tower, of which the Philippines needs around 50,000 more countries than Thailand and Vietnam.

Each of these persons must obtain approvals – at least 25 permits – from the health, environment, transportation and aviation authorities to citizens, mayors, managers and, sometimes, tribal parents.

"Ironha is the people who complain about no one, or poor reception of the mobile phone, but they do not want to be close to the towers," said Anna Lissa Visda, site purchasing manager at Globe.

Problems with legal issues are not unusual, and bureaucracy remains a problem that last week's World Bank Business Laid Surge reflected the country's decline to 113 out of 113.

An archaic law has been maintained that limits aliens to 40 percent of telecom operators and does not have a common turneric policy requiring companies to share infrastructure, as well as government investments or subsidies for its creation. Rio said that these issues are being addressed.

The PLDT spokeswoman said: "there are still many barriers" and a "tedious" licensing process that the global agent describes as "local" because local governments set their own rules.

Globe said it was ready to lay off its tower property to support new entrants and small businesses, and welcomed the new player "to help promote a healthy competitive environment."

(Editing: Simon Cameron-Moore) (([email protected]; +63 2841 8983))

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