How did Mislatel get provisional 3rd telco status?

Senators on Thursday called for transparency in how Mislatel Consortium was actually selected as the country’s provisional third telecommunications company.

Filipinos long for free internet access, uninterrupted mobile calls, and timely text messages, the senators said, noting that consumers also want private data not to be used without prior consent for commercial and intelligence purposes.

“That’s why we need to do things right. The selection of the joint venture of a Davao-based businessman and state-owned China Telecom as the provisional new major telecommunications player should be examined carefully,” the minority senators said.

In a joint statement, Minority Leader Franklin Drilon, Senators Risa Hontiveros, Leila de Lima, Francis Pangilinan, and Antonio Trillanes IV said the telecommunications industry needs more players for the sake of the tens of millions of consumers who deserve quality internet and mobile service.

On Wednesday, the National Telecommunications Commission (NTC) declared the consortium of Dennis Uy’s Udenna Corp., its subsidiary Chelsea Logistics Holdings Corp., and state-owned China Telecommunications Corp., as the provisional third telco after its bid documents were deemed qualified and complete. 

The senators wanted to know how Mislatel qualified and why the two other bidders were disqualified. They also asked for the track record of the Udenna-China Tel consortium in the telecommunications business.

“Was the government opening up the bidding to other players just a formality? Masabi lang that the government went through the process? In December 2017, Malacanang said it wants the government to ensure that China Telecom can begin its Philippine operations by the first quarter of 2018. Ito na ba ‘yun?” they asked.

The government must be transparent “about these matters because allowing the joint venture to enter the industry means giving them access to our daily communication activities, a security issue for our country and our people.”

“We do not want another NBN-ZTE ($329 million) and North Rail ($421 million) anomalous deals in our midst which, if not exposed, would have robbed the people billions of pesos,” the senator said.

The senators were referring to the controversial multi-million dollar national broadband network deal with China’s ZTE Corp. that the Philippine government entered into in 2007

The deal was hounded by allegations of corruption, compelling then-President Gloria Macapagal-Arroyo to cancel the project in October 2007.

Northrail, on the other hand, is an 80-kilometer railway project from Caloocan to Malolos which the government entered into with China National Machinery & Equipment Corp. Group—China National Machinery Industry Corp. or Sinomach—in 2003.

The project, which was allegedly overpriced, was canceled in 2008.

Majority Leader Juan Miguel Zubiri said the Senate could exercise its oversight power by conducting a hearing on the Duterte administration’s third telco initiative.

“I believe there are hearings, suspended lang. There will be hearings regarding this,” he said during the weekly Kapihan sa Senado.

Senator Grace Poe, head of the public services committee said the Department of Information and Communications Technology “should be transparent and lay out the considerations that qualified the bidder.” Her committee conducted a hearing on the third telco initiative.

“There were security concerns earlier raised over the participation of a foreign firm and these should not be sidestepped. The Armed Forces of the Philippines and other intelligence agencies should weigh in on the qualifications,” she said in a separate statement.

“We must keep in mind that this third telco was allowed to come in because the paying subscribers have been longing for service commensurate to what they have paid for,” the senator said.

“Milyun-milyong Pilipino ang gumagamit ng internet at umaasa sa pagpasok ng bagong telco na ito. Sana wala ng choppy lines, dropped calls at usad-pagong na connection.”

“‘Wag natin silang biguin,” Poe added.

Senator Joel Villanueva said NTC must ensure that the third telco player fulfill its commitments.

“It is a commitment not only to the government, but more importantly to the Filipino consumers who deserve the best possible service that is available in the industry at the lowest possible cost. I am hoping that their entry will bring competition to the sector and will improve the quality of telecommunications services in the country,” he said.

The entry of a new major player augurs well with the Telecommuting  Act or Work from Home Bill that allows work flexibility in the private sector through the use of technology. The bill is now pending the signature of President Rodrigo Duterte to be enacted.

“We expect that the entry of a third telco player will boost competition and lead to an upgrade of our existing internet infrastructure so our employees could soon afford an option to work efficiently under our proposed flexible work arrangement,” Villanueva said.

President Duterte wanted a third telecommunications company to challenge PLDT-Smart and Globe Telecom’s dominance and raise the quality of service and lower the cost to consumers.

The government is using the highest committed level of service model to select the third telco player. It has set three criteria to score the bidders: committed national coverage, internet speed, and capital operating expenditures. —VDS, GMA News