Nov 09, 2018 (China Knowledge) - A consortium, consisting of China Telecommunications Corp., <0728:HK> and firms controlled by Filipino tycoon, Udenna Corp. and its unit Chelsea Logistic Holdings Corp., has been declared the third telecommunication player in the Philippines’ telecom market with license issued.
Two rivals’ bids by Sear Telecom and Philippine Telegraph and Telephone Corporation were disqualified on the ground of incomplete documents submitted while other foreign players decided to opted out.
The entrance by the consortium will challenge existing players Globe Telecom and PLDT in the Philippines.
Philippines President Rodrigo Duterte has welcomed the entry of China Telecom into the country as the telecommunication only stands to gain from good competition. The president also believes in the ability of Chinese companies to produce high quality electronics.
The duopoly in Philippines has been accused of being uncompetitive for providing patchy and poor services provided.
Analyst has estimated the revenue worth of Philippines’ telecommunication sector to be USD 5 billion a year. The consortium will be committing USD 2.65 billion to USD 4.55 billion over the next five years to meet the telecom regulator’s capital expenditure requirements.
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