Converge ICT not keen on joining race for third telco slot

Converge ICT Solutions Inc. has no aspirations to be the third major telco player in the country, citing legislative constraints.

“I think [there] should be [a] quite deeper study in terms of mobile. With the support of the government, I think, maybe to have some interest with the other players internationally,” said Converge president and CEO Dennis Uy.

“Maybe we can join forces to do it, but not at this moment,” he told reporters in Makati City.

For now, Converge ICT is focused on expanding its fixed broadband business, rather than entering the telecom network industry and competing  with incumbents PLDT Inc. and Globe Telecom.

“We are focusing right now on the fixed broadband, and we see the whole country,” Uy said, noting that a huge chunk of the market remains unserved.

“Imagine the home penetration rate is not even at 15 percent. Sad to say, still the old technology. And more than that, the fiber-to-home is not even a million subscribers,” Uy noted.

What could prompt Converge ICT to take a closer look at the telecom industry is when the government ensures that incumbent players surrender unused radio frequencies in favor of the incoming player.

“We need government intervention. There should be government intervention,” Uy said. “The frequencies belong to the state ... not to the company.”

The lack of radio frequencies for the third telco player is an issue raised by stakeholders regarding why prospective bidders would not be enticed to invest in the industry.

Uy is calling on the government to take out interconnection rates, or the charges against subscribers when they call or text users on another network, it should be zero.

The Department of Information and Communications Technology (DICT)  is still finalizing the terms of reference in selecting the third telco player.

DICT Acting Secretary Eliseo Rio has said the third telco will be chosen based on the highest committed level of service, which involves a point system in the commitments of bidders vying for the slot.

Under the draft terms released in May, companies vying for the third telco slot must shell out at least P40 billion a year to finance its operations. —VDS, GMA News