China Telecom Chosen to Enter as Third Telco Player in the Philippines

One of the most popular telecommunications company in Asia, China Telecom Corporation Limited has been chosen by the Chinese government to enter the Philippine telecommmunications as the country's third telecom player according to the revelations made by Presidential Communications Secretary Martin Andanar.

According to Acting Department of Information and Communications Technology Secretary Eliseo Rio, China Telecom will be investing in the country's telco industry.

Sec. Andanar also noted that 'Yung huling Cabinet meeting which was 'yung last week lang, ay ni-report ni Acting Secretary... na nakapili na ang Chinese government ng company sa China na mag-iinvest sa telco dito sa bansa natin," he said.

The PCOO also added that "Ito ay ang kompanyang China Telecom. Ang China Telecom ay ang pinakamalaking telecommunications company sa China. Marami kasi 'yun, maraming telecommunications company 'yan eh," he added.

Aside from being one of the top telecom companies in the Chinese market, China Telecom's share is also listed on both the Hong Kong Stock Exchange and New York Stock Exchange.

According to the company's first-half financial report, it had a total of 230 million subscribers as of end-June, accounting for a 16.8-percent market share in China.

For the six-month period, China Telecom posted operating revenues of RMB176.828  billion (P1.348 trillion), bringing its net profit to RMB11.673 billion (P89.022 billion).

Despite the financiall stability of the Chinese company, they will be forced to partner with a Philippine company because pubilc utilities in the Philippines may only be 40-percent owned by foreign investors under the 1987 Philippine Constitution.

China Telecom could possibly partnered with the locally listed Philippine Telegraph & Telephone Corp. (PT&T), which was earlier reported by Reuters to be in talks with eight Chinese companies for a possible partnership.

In a filing to the Philippine Stock Exchange (PSE), PT&T last month confirmed it is looking to invest an estimate of $200 million over to expand its broadband business in key areas over the next three years.

With the positive development in the upcoming entry of a third telco player, Sec. Andanar said that the government is now rushing the plans for a third player to disrupt the current duopoloy of Ayala-led Globe Telecom Inc., and Pangilinan-led PLDT Inc.

Source: PNA News

China Telecom Chosen to Enter as Third Telco Player in the Philippines China Telecom Chosen to Enter as Third Telco Player in the Philippines Reviewed by Phil Newsome on December 11, 2017 Rating: 5
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