Pres. Duterte Requires 3rd Telco DITO Telecom to Outperform Globe & Smart, or Lose P26 Billion

The President of the Republic, Pres. Rody Duterte required the third telecom player, DITO Telecom to outperform Globe and Smart, or lose the P26 Billion bond.

The statement of the Duterte administration came straight from the horse's mouth, so to speak, from former Information and Communications acting secretary Eliseo Rio Jr., who shepherded the entry into the telecoms monopoly of a third telecommunications company.

According to veteran author, Rigoberto on his latest article, Eliseo Rio posted on his Facebook Page the narrative which he found very informative in assessin the chances of a third telco breaking the virtual two-firm monopoly of the telecom industry.

Tiglao revealed on his article that the two firms, Globe and Smart, pretend to be Filipino-controlled. The reality, veiled by the scheme of "nonvoting preferred shares" is that Singapore Telecommunications Ltd., owned by Singapore's state investment arm Temasek Holdings, is the biggest stockholder of Globe Telecom Inc., while the Indonesian-controlled First Pacific Co. Ltd., controls Smart Communications Inc.

DITO Telecommunity for their part is transparent according to Tiglao by disclosing in all its corporate information that it is 60-percent owned by tycoon Dennis Uy's Udenna Corporation and Chelsea Logistics while the remaining 40 percent is owned by China Telecommunications Corp. a Fortune 500 company and the word's largest broadban internet network with nearly a billion users.

The veteran columnist stated that the Globe-Smart monopoly's power had been demonstrated in the fact that attempts by two telcos to enter the industry had been easily crushed.

These were by the late tycoon John Gokongwei's Sun Cellular (crushed in 2012) and by San Miguel Corp., led by Ramon Ang with the Australian-based Telstra (crushed in May 2016).

Based on the narrative of former DICT Secretary Eliseo Rio Jr., this time around the Philippine government will be backing up the third telco to compete against the duopoly of Smart and Globe after the government released some insider information regarding the reasons why the previous attempts to compete the leading telecom providers failed.

Several insiders of the two would-be third telco, Sun Cellular and San Miguel-Telstra, one of the reason why they gave up was that they thought Pres. Aquino's government would help them to break the monopoly in order to improve internet services in the country but they were fooled and eventually had to sell the facilities and human resources they already had in place.

Read the Complete Expose of R. Tiglao by heading on to the official website of the The Manila Times.

Source: The Manila Times

Pres. Duterte Requires 3rd Telco DITO Telecom to Outperform Globe & Smart, or Lose P26 Billion Pres. Duterte Requires 3rd Telco DITO Telecom to Outperform Globe & Smart, or Lose P26 Billion Reviewed by Phil Newsome on September 25, 2020 Rating: 5
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