China Telecom picked to become the Philippines' third telecoms player

Beijing has selected China Telecom, the country’s biggest fixed-line network operator and third-largest mobile services provider, to invest in the Philippines, according to the Duterte administration.

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State-run China Telecom Corp is expected to invest in the Philippines and become the Southeast Asian country’s third nationwide telecommunications network operator, according to senior officials of the Duterte administration. Photo: Reuters

Published: 1:54pm, 11 Dec 2017Updated: 8:43pm, 11 Dec 2017

China Telecom Corp could become the Philippines’ third nationwide telecommunications operator, officials of the Southeast Asian country said on Sunday, as the government sought to stir up competition to boost notoriously poor fixed-line broadband and mobile network operations.

Philippines President Rodrigo Duterte last month offered China the “privilege” of challenging a long-standing duopoly that has frustrated consumers because of slow and intermittent internet and mobile phone services.

“The Chinese government selected China Telecom to invest in the Philippines upon invitation by President Duterte during the bilateral meeting last November 16,” said Eliseo Rio, secretary of the Department of Information and Communications Technology.

Chinese companies, however, could not operate alone in the Philippines and would need to partner with a local company.

The government is now looking at who will partner with the state-run China Telecom on a 60-40 basis, Rio said.

The Philippine Constitution’s 40 per cent cap on foreign ownership of domestic telecommunications companies has kept interest from multinationals at bay in the market of more than 100 million people.