Philippines to prevent sellout by 3rd telco operator to PLDT, Globe

LG Uplus

14/01/2018 14:35

MANILA, Jan 14 (Reuters) - The Philippines will prevent a 
third telecoms operator set to be named by March from selling 
out to both PLDT Inc  TEL.PS  and Globe Telecom Inc  GLO.PS  to 
ensure the industry will not return to duopoly, a minister said 
on Sunday. 
    Presidential Communications Secretary Martin Andanar said 
the third operator is expected to invest 400 billion pesos to 
500 billion pesos ($8 billion-$10 billion) over a five-year 
period in rolling out its telecom business. 
    The third player will be asked to sign an agreement that it 
will not sell out to its two rivals, he said. 
    "That is the beauty of the new agreement with the third 
player as there is such a clause there," he said in a radio 
interview. 
    President Rodrigo Duterte has welcomed Chinese entities to 
be the Philippines' third telecoms operator, following through 
on a threat he made last year to PLDT and Globe to shape up or 
face competition, following complaints about their services and 
uncompetitive prices. 
    State-run China Telecom Corp Ltd  0728.HK , KDDI Corp 
 9433.T  of Japan, and LG Uplus Corp  032640.KS  of South Korea 
and an unidentified Taiwanese company are interested in setting 
up operations in the Philippines in partnership with local 
firms, Andanar said. 
    LG Uplus was looking at partnering with Philippine Telegraph 
& Telephone Corp  PTT.PS , he said.  
    Last week PT&T told the stock exchange it was in talks with 
several companies including China Telecom and a South Korean 
telecom company, which it declined to identify, citing a 
non-disclosure agreement. 
    "These talks include possible partnership in terms of PT&T's 
technical, financial and supply requirements for example, and is 
not limited to a mobile operator partnership," it said. 
    Andanar said KDDI was also interested in bidding to become 
the Philippines' third telecom operator, but the Japanese firm 
has denied this. 
    "It is not true that KDDI will enter the telecommunications 
business in the Philippines, but since KDDI is a global company, 
we are exploring various possibilities of expanding our 
telecommunications businesses overseas," a KDDI spokeswoman 
said. 
    PLDT announced last month it will put aside a record high 
amount of at least $1 billion for capital expenses this year as 
it braces for the arrival of a third competitor.  urn:newsml:reuters.com:*:nL4N1OK2OD 
    Globe's board has approved a capital expenditure budget of 
$850 million for this year, saying it seeks to improve internet 
services in the Philippines, "with the goal of becoming an 
admired nation for having first world internet connectivity". 
     
 
 (Reporting by Enrico dela Cruz; additional reporting by Karen 
Lema in Manila and Shida Yoshiyasu in Tokyo, editing by David 
Evans) 
 ((enrico.delacruz@tr.com; +632 841-8934; Reuters Messaging: 
enrico.delacruz.thomsonreuters.com@reuters.net)) 
 
Keywords: PHILIPPINES TELECOMS/