NTC declares Udenna-China Tel group as provisional third telco

The National Telecommunications Commission (NTC) on Wednesday declared Mislatel Consortium as the country’s “provisional” third telco.

Mislatel’s bid documents were cited as “qualified” and “complete.”

The consortium is made up of Dennis Uy’s Udenna Corp., its subsidiary Chealsea Logistics Holdings Corp., and state-owned China Telecommunications Corp.

During the selection process in Quezon City, the NTC said the first package submitted by Mislatel was complete, and the commission will no longer proceed with the detailed evaluation of the second package.

NTC Selection Committee Chair Ella Lopez said the consortium scored 456.80 points out of 500 on its level of commitment as the third major players in the telecom industry.

“For having the highest committed level of service today, with the final rate of 456.80 points, the Selection Committee hereby declares participant Mindanao Islamic Telephone Company Inc. with Udenna Corp., Chelsea Logistics Holdings Corp., and China Telecommunications Corp. as the provisional New Major Player, subject to verification phase,” Lopez noted.

The bidding system approved by the government takes into consideration the highest committed level of service (HCLOS) of each third telco aspirant.

Mislatel gained the following scores: 172 points for coverage, 111 points for speed, 175 points for capital expenditure and operations expenditures.

Commitments

The NTC will now scrutinize the consortium’s commitment with regards to internet coverage and speed once its status is officially confirmed as the new major player in the telecom industry.

In its first year of operations, the consortium vowed to achieve a nationwide coverage of 37.03 percent, minimum speed of 27 megabits per second (Mbps), and capex/opex of P150 billion.

In its second year of operations, it made a commitment to a nationwide coverage of 51.01 percent, minimum speed of 55 Mbps, and capex/opex of P27 billion.

The company committed to achieve in its third year the following parameter: 70.01-percent nationwide coverage, 55 Mbps minimum speed, and P27 billion capex/opex.

In its fourth year Mislatel intends reach 80.01-percent nationwide coverage, 55 Mbps minimum speed, and a capex/opex of P27 billion.

In its fifth year of operations it vowed to attain 84.01-percent nationwide coverage, 55 Mbps minimum speed, and a P27-billion capex/opex.

“The Mislatel Consortium ... welcomes the announcement of the National Telecommunications Commission Selection Committee declaring it as the provisional New Major Player in the Philippines’ Telecommunications market,” the company said in a separate statement.

“While the consortium awaits the new major player confirmation from the NTC Selection Committee, it is no less grateful to the NTC for carefully reviewing all the entries and presenting a historic opportunity to provide the best telecommunications services that Filipinos have been aspiring for,” it said.

Campaign contributor

NTC Deputy Commissioner Edgardo Cabarios told reporters the commission will formally announce the final decision on third telco player. But he was unsure when this would happen as two other telcos are appealing the NTC decision to disqualify them.

Uy is one of President Rodrigo Duterte’s significant campaign contributors in the 2016 presidential race.

According to his statement of contributions and expenditures, Uy contributed P30 million to Duterte’s campaign kitty for the 2016 presidential elections.

Uy is also the president, CEO and director of Phoenix Petroleum Corp.

Mislatel was one of the three bidders to hurdle the initial selection process on Wednesday and qualified to proceed to the next phase of the process. Two other bidders were disqualified.

The Singson-led consortium was disqualified for not submitting the “Participation Security” of P700 million.

Philippine Telegraph & Telephone Corp. was disqualified for not having a Certificate of Technical Capability. —VDS, GMA News