China Telecom, Philippine partners qualify for new telecom player
The Philippine National Telecommunications Commission (NTC) announced on Wednesday that China Telecommunications Corp. (China Telecom) and its Philippine partners won the bidding for the third major player in the Philippines' telecommunications market.
Their group, called Mislatel Consortium, includes Udenna Corp., its subsidiary Chelsea Logistics Holdings Corp., and China Telecom.
"The first submission package of Udenna Corp. is qualified to proceed with the selection process ... Will now be subjected to detailed evaluation," NTC Selection Committee Chair Ella Lopez said.
According to Philippine laws and regulations, foreign firms are required to join a consortium due to a 40-percent ownership cap in a local telecoms outfit. That's why the Chinese telecommunications giant joined hands with its Philippine partners.
"This is a crucial step for China Telecom to go international, and it is a concrete move for us in implementing China's 'Belt and Road Initiative,'" China Telecom said in a statement on Wednesday.
It added, "Based on the world-leading technology, we assure that we can do more to benefit the Filipinos as well as to prosper the Philippine communications market with our partners."
China Telecom is one of the largest telecommunications providers in China. It is publicly listed in the Hong Kong Stock Exchange and the United States' New York Stock Exchange.
The Udenna Corp., which was incorporated in 2002, is among the fastest growing holding companies in the Philippines. It is in the business of distribution and retail of petroleum products and lubricants of Phoenix Petroleum.
"The consortium is confident that Udenna Corporation's extensive supply chain and knowledge of local industries will complement the world-class technology and telecommunications expertise of China Telecom, one of the world's largest and most experienced fixed and mobile network operators," Udenna Corp. said in a statement.
The Philippine administration is seeking the third major telecommunications player that would compete with the duopoly rivals PLDT and Globe to boost the country's poor telecom services.