Sen. Grace Poe Deplores DITO Telecom's Lack of Fund Foresight

Losing presidential bet and lawmaker, Senator Grace Poe made headlines anew in the mainstream media after she called to task DITO Telecommunity for applying for a franchise unaware of how much it would need to fund its venture to become the country's third telco player. 

The senator who have been running for President during the past few Presidential election, deplored that DITO Telecom failed to anticipate how much it needed to fund the venture as she objected to the use of DITO's franchise which will expire in 2023 as collateral to obtain more funding. 

During the past few months, the third telecom player showed some progress on their preparations for the highly anticipated official commercial roll-out this coming March 2021 with more cellular towers being built in various parts of the country. 

DITO Telecom promised to provide at least 27Mbps internet speed in the first year of operations and they targeted to double such speed on year two of operations. 

The company already made their first domestic and international phone and video calls last March 2020, two months ahead of schedule and despite the global pandemic. 

A total of 1,300 base stations and 300 are already on air, this is on top of the number of towers being constructed by their ITC's and DITO's core networks is already in place and continues to be enhanced and reinforced.  

DITO Telecom already made some progress on their Friendly User Test during the past few days. The company is set to launch this coming March 2021. 

Despite the achievements presented by DITO Telecommunity, Sen. Grace Poe, the Senate Committee on Public Services Chairperson, cited the study of Asia-Pacific Consulting firm CreatorTech, which showed DITO's potential inability to raise enough capital. 

CreatorTech said that to meet its commitment of $3Billion spending in its first year, Dito will further need $2.5 billion in addition to the $500 million already drawn from its Bank of China credit facility. 

Meanwhile, DITO Chief Administrative Officer Adel Tamano had admitted that the company has a 70-30 debt-to-equity ratio, with P20 billion in equity and P150-billion worth of debt and shareholder advances for its initial rollout this year. 

Atty. Tamano also confirmed that the deferral of its franchise renewal would make it more difficult for the telco to obtain further financing or loan approvals. 

Source: The Manila Times

Sen. Grace Poe Deplores DITO Telecom's Lack of Fund Foresight Sen. Grace Poe Deplores DITO Telecom's Lack of Fund Foresight Reviewed by Phil Newsome on January 03, 2021 Rating: 5
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