China challenge puts pressure on PH telcos: advocacy group


Posted at Dec 28 2017 09:10 AM

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MANILA - The looming entry of a Chinese telecommunications firm puts pressure on the country's two dominant carriers to improve their services, an internet advocacy group said Thursday.

Globe Telecom and PLDT Inc have the capacity to increase internet speeds, as shown during recent international summits hosted in Manila, but they see no incentive to do so on a larger scale until the potential challenge from China was announced, said Pierre Tito Galla, co-founder of Democracy.Net.PH.

"We are not provided of this by the duopoly because they simply don't want to. There's no incentive for them to provide good services," Galla told ANC's Early Edition.

President Rodrigo Duterte wants a third telco player up and running with the help of China by the first quarter of 2018, according to his spokesman.

PLDT last week announced that it was spending a record $1 billion (P50 billion) to improve its facilities.

A third player, however, might not be able to compete effectively as the two dominant carriers since they have secured most of the available spectrum for LTE and 5G, Galla said.