2018 Philippine third telecommunications provider bidding update and analysis

In 2018, the Philippine government kicked off a bidding process for the third telecommunications provider, aiming to increase competition in the market and improve services for consumers.

The bidding process was expected to be completed by the end of 2018, with the winning bidder set to receive a license to operate a third major telco in the country.

The government was looking for a provider that could offer better services and lower prices to Filipino consumers, who have long been plagued by high costs and poor coverage.

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The bidding process for the third telecommunications provider in the Philippines was an interesting one. There were three submitted bids, each with its own unique characteristics.

Mislatel, a consortium of local and international companies, was one of the bidders. Udenna Corporation, a player in the logistics industry, partnered with Chinese state-owned firm China Telecommunications Corporation to enter the bid.

Sear Telecom, another bidder, consisted of LCS Holdings and TierOne Communications International, backed by Chinese firm Fujian Torch Electron Technology and Singaporean company Miller Pte. Ltd. They claimed to be the only bidder planning to use Satellite Internet access.

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Philippine Telegraph and Telephone Corporation (PT&T) was the third bidder, a broadband service provider in Luzon with a 10,000 km pure fiber cable network. They had previously been a major competitor of PLDT in the 1990s.

The bidders had different plans for expansion and growth, with Mislatel already having a dormant franchise granted in 1998. Sear Telecom, on the other hand, aimed to augment their existing business in Mindanao.

Here's a summary of the bidders:

The timeline for the bidding process is quite straightforward. The third telco player is expected to be selected by December 2018.

The stakes are high, with the winning bidder being awarded a Certificate of Public Convenience and Necessity (CPCN) with a validity of either 15 years or the length of the winning bidder's existing franchise, whichever is shorter.

The winning bidder will also receive six radio frequency bandwidths: 700 MHz, 2100 MHz, 2000 MHz, 2.5 GHz, 3.3 GHz, and 3.5 GHz.

Here's a breakdown of the key dates:

The bidding process will be based on the Highest Committed Level of Service (HCLoS) approach, with a focus on the bidder's financial and technical capability to deliver communications services.

Expressed Interest was a crucial part of the 2018 Philippine third telecommunications provider bidding process. Several companies showed interest in participating in the bid.

AMA Telecommunications, backed by Middle-Eastern firms, bought bidding documents on October 31, 2018, from the NTC. This was a significant move, as AMA is a holder of a 25-year congressional franchise on telecommunications granted in July 2016.

Converge ICT initially expressed interest to participate in the bid but withdrew its plans on November 7, 2018. This was due to concerns about the selection process and the involvement of a Chinese state-owned company.

Mobitel, a company owned by the A1 Telekom Austria Group, also expressed interest in participating in the bid. However, it's unclear what the company's next steps were after expressing interest.

NOW Corporation, a Philippine-based company, expressed interest in participating in the bid but decided not to submit its bid on the November 7 deadline. This was due to the company's legal team advising against it, citing the financial requirements of the bid as a "money making scheme".

Streamtech, a company incorporated by the Villar Group, also expressed interest in participating in the bid. However, the company decided not to pursue a bid after internal discussions with its management.

Telenor, a Norway-based company with a presence in several Southeast Asian countries, planned to participate in the bid with a local company. However, the company did not submit a bid, possibly due to its focus on its existing operations in the region.

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