MANILA -- Lawmakers on Monday deferred deliberations on whether or not Chelsea Logistics and China Telecom should assume a controlling stake in the designated third telco, Mislatel.

Before it secured rights to challenge Globe Telecom and PLDT Inc, Mislatel had an agreement with DigiPhil as its "sole partner" in the utilization of telecom frequencies, Surigao Del Sur Rep Prospero Pichay told the House Committee on Legislative Franchises.

This posed a "pending legal obstacle," said Pichay.

DigiPhil is a unit of Tier1, which, during the bidding proper, joined Mislatel rival Sear.

Mislatel president Nicanor Escalante said during the same hearing that the firm's agreement with DigiPhil made no mention of a third telco and that it was terminated on Oct. 5 due to “malicious misrepresentation.”

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“It is very important that we have a third player but let’s do it properly. If we approve the transfer here, we know that there is a legal impediment. I think we would be remiss of our duty to do prudent research,” Pichay said.

The Securities and Exchange Commission is still “in the process of determining the ultimate nationality” of the consortium, which will ensure that the ownership of the firm is compliant with Philippine laws, General Consel Camilo Correa said.

A security review on the Mislatel group is still pending, said National Security Council Deputy Director General Vicente Agdamag.

• China-backed Mislatel must prove it's no security risk: officials

“I would like to say that this is not a simple issue that need to be addressed. This is communication and communication may cripple the economy of any country if mishandled,” Coop-NATCCO Partylist Representative Antony Bravo said.

Mislatel has 90 days to complete the requirements to officially become the country's third telco player.

The consortium of Dennis Uy's Udenna Corp and Chelsea Logistics with China Telecom was named "provisional third telco player" last Nov. 7.