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What we know about Mislatel, the 3rd telco player

A few days ago, the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC) identified Mislatel as the provisional 3rd telco player in the Philippines. Now let’s ask who Mislatel is, the companies behind it, and what it has committed to deliver.

Who is the Mislatel consortium?

The consortium is led by Davao-based businessman Dennis A. Uy (Co-Founder, Chairman, CEO & President, Phoenix Petroleum Philippines, Inc.) and state-owned China Telecom Corp. Ltd. It is comprised of Mindanao Islamic Telephone Inc. (Mislatel), Udenna Corporation, Chelsea Logistics Holdings (CLC), and China Telecom.

The Mindanao Islamic Telephone Company, Inc. (Mislatel) may sound new, but the company has been around for quite a while now. It acquired its congressional franchise on April 19, 1998, under Republic Act No. 8627.

According to a recent statement of its local partner, Chelsea Logistics, Mislatel has a nationwide franchise to construct, operate and maintain telecommunication facilities until 2023, based on the NTC’s list of telecommunications entities with existing legislative franchises.

As for the companies behind the consortium, first up is Udenna Corporation. It is a holding company in the Philippines which is in the business of distribution and retail of petroleum products and lubricants under the Phoenix brand and is engaged in shipping and logistics through its wholly owned subsidiary, Chelsea Logistics Holdings Corp. Its business portfolio includes real estate and property development, education, leisure, gaming and tourism, and infrastructure.

Next is Chelsea Logistics Holdings Corp. (CLC) is the shipping business segment of Udenna Corporation and is one of the biggest shipping and logistics company in the Philippines. It offers integrated shipping and logistics solutions nationwide through major subsidiaries namely, Chelsea Shipping Corp. (CSC), Trans-Asia Shipping Lines, Incorporated (Trans-Asia), Worklink, Services, Inc. (WSI), and Starlite Ferries, Inc. (SFI). It also owns 28.15% indirect economic interest in 2Go Group, the largest supply chain enterprise and end-to-end solutions provider in the Philippines.

And then we have China Telecommunications Corporation, known as its trading name China Telecom, which is a Chinese state-owned telecommunication company. It is the largest fixed-line service and the third largest mobile telecommunication provider in China.

Looking at the profile summary of Mislatel and its committed investors submitted to the DICT, Udenna Corporation will hold 35% ownership, CLC at 25%, while China Telecom will hold 40% which is the maximum restriction imposed for foreign ownership in the Philippines.

Among the three, China Telecom is the only state-owned company and, based on their backgrounds, the only company with telecommunications operations experience.

3rd telco player selected

On November 7, 2018, the Department of Information and Communications Technology (DICT) identified Mislatel as the 3rd telco player in the Philippines. The bidding was live-streamed through the agency’s official Facebook page.

DICT Acting Secretary Eliseo Rio Jr. said that Mislatel is the only bidder who was able to submit the complete requirements. The Philippine Telephone and Telegraph Corporation (PT&T) and Sear Telecom Consortium of Tier One Communications and LCS Group of Companies were disqualified due to their failure to submit participation security and certification of technical capability, respectively. The two companies said they will file their respective Motion for Reconsideration in their attempt to still challenge the winning bid.

Mislatel’s highest committed level of service (HCLOS) bid posted 456.80 points out of 500 based on its highest committed level of service based on national coverage, Internet speed, and capital and operational expenditures over a five year period. Points are awarded based on commitments and the one with the highest score wins the bidding. Fortunately for Mislatel, they were the only player who completed all the required documents and, thus, winning the bid.

National security concerns

The presence of a Chinese state-owned company in the Mislatel consortium raised cybersecurity concerns. Senator Grace Poe said that security concerns “should not be sidestepped” and that the Armed Forces of the Philippines (AFP) and other intelligence agencies should weigh in on the qualifications of the new major player.

The National Security Adviser Hermogenes Esperon assured that the AFP played a role in the selection of the 3rd player. “Just to let you know, the Armed Forces was considered there,” Esperson said in a press briefing at the Malacañang Golf Clubhouse. “I agree lagi natin titingnan ang security ng ating Communications and that’s really the reason we are there. We have inputted provisions for national security in the entry of the third main player.” he added.

We want our national broadband to be secure and, as much as possible, since it will be a personal network for the whole of government. Kaya secured po ’yan, secured. ‘Wag kayo mag-alala,” Esperon said.

Makati City Rep. Luis Campos Jr. and Senate Majority Leader Juan Miguel Zubiri also downplayed the concerns.

“Risks are everywhere, but we have regulators precisely to manage those risks. Besides, both PLDT and Globe are already at least 40 percent owned by foreign entities,” Campos said.

“We are counting on the newcomer to compete brutally with the nation’s two dominant players in delivering faster mobile Internet connection speeds at a lower price,” he added.

“National security concern, probably not because the National Grid Corporation of the Philippines (NGCP) is 40 percent owned by a state-owned Chinese company. They are doing their part in helping develop our energy sector,” Zubiri said.

“I believe China Telecom is a publicly listed firm in mainland China. The books are open, they are transparent,” he added.

Mislatel’s commitment

Mislatel has committed to provide 37.03% of the total Philippine population an average Internet speed of 27Mbps through a PHP 150-billion investment for the first year of its operation.

Through the second and fifth year of its commitment period, the consortium should have covered 84.01% of the total Philippine population with an average speed of 55Mbps, spending a total of Php258 billion.

If Mislatel failed to deliver its commitments, the Philippine government will be able to forfeit Mislatel’s Php14 billion performance bond. This bond serves as some sort of penalty should the service provider fail to deliver on any of its commitments.

Mislatel still needs to undergo a document verification phase before it is finally confirmed as the country’s third telco player.

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Avatar for Diangson Louie

This article was written by Louie Diangson, Managing Editor of YugaTech. You can follow him at @John_Louie.

19 Responses

  1. Avatar for desmond ponce desmond ponce says:

    are you looking for site 500 sq mtrs contact me at cauaysn neg occ

  2. Avatar for Gift joy Gift joy says:

    Can i help looking for a site on your cellsite pls im willing to apply as your representative i came frm visayas are you can contact me on my number 093034*****/091562*****-92 or u can email me on my yahoo egif****@****.***

  3. Avatar for rhea ponce rhea ponce says:

    where is your office here at region 3?
    any contact number?

  4. Avatar for Virgilio M. Gargar Virgilio M. Gargar says:

    Thank you for the 3rd TelCo. finally magkaroon na rin ng magandang telecommunications dito sa Pinas. More power Mislatel. If you are interested to put up a cellsite our land in Mindanao, Bgy Tagulo, SND may magandang puwesto along highway walang gaanon bahay perfect for cellsite. If you find time pls. call me 0927 734 9022 Ver or 099984***** Thank you.

  5. Avatar for Leopoldo Tenepere Leopoldo Tenepere says:

    Cell site for Kease Location High land mountain Manlolobog Sumuroy Bobon Northern Samar.Please do not hesitate to contact us Modesta Tenepere Brgy Old Rizal Catarman Northern Samar. TRL. +6392718*****

  6. Avatar for Marlyn Dela Cruz Marlyn Dela Cruz says:

    Cell site for lease

    Location: eastern and northern samar

    Contact #:092890*****

  7. Avatar for Jocelyn Andebor Gimena Jocelyn Andebor Gimena says:

    Hello Mislatel!
    Do you have hiring in Cebu City area.

  8. Avatar for Bryan Jay M. Agra Bryan Jay M. Agra says:

    Hi Mislatel! Are Hiring for a customer service representative? I would like to apply, I already have a work experience when it comes to a telco company and i work as a representative for Wireless Number Portability Center of a U.S. telco.

  9. Avatar for Scott Scott says:

    More competitors please! 4th player e welcome nyu na rin! Mahal ng internet, bagal pa. at pag sa byaran na bilis pa maningil!

  10. Avatar for camoteng hinog camoteng hinog says:

    what do you expect something about it ha ? is that new to us here ? before, it the case of oil industry here in the philippines it tone no difference like what they louded now with this mislatel telecom. Before, they privatized Petron corporation just to give fair competition among oil companies believing oil prices will go down because of the competition. But look at that today, is there any favorable result on the part of the comsuming public from that so called “3rd oil competitor?” Now, here again, “MISLATEL” did you expect something from this another erroneous move by some others out there ? so funny. “WITHOUT PROPER REGULATION” will only lead to corruption, tanggap dito ,tanggap doon … Just evaluate the present result ,or the present situation in the country. So far, it needs understanding beyond compare.

  11. Avatar for Lon Lon says:

    Any updates on what mislatel is doing right now

  12. Avatar for paknoiy paknoiy says:

    ammmmmmmmmmmmmmmmmm is good because its very fast internet

  13. Avatar for Jesser Delfin Jesser Delfin says:

    What address or contact no.

  14. Avatar for Salamander Salamander says:

    Thanks China Telecom. We will now be free to the web invasion coming from the westerns. The great wall will soon be rising here in Phil. Sa wakas, mapapalitan na ang pagong kong intenet connection.

  15. Avatar for SpiderWak SpiderWak says:

    China Telecom, the same company that hijacked Google’s traffic. This government completely disregards our national security.

    • Avatar for royor royor says:

      that was a miscalculation, and it’s not China telecom. no wonder you do not experience any bidding in your entire life do you? there is a lot of security rules that you need to pass in order to win the bid. also, stop assuming the government is disregarding your so-called national security. If one person is against the another there will be no satisfaction on your side it will be forever in your cabinet that bitterness. Btw let them do their job and we’ll see what it will become.

  16. Avatar for Pinasnewprovince Pinasnewprovince says:

    The Chinese overlords are slowly taking our country. Kahit yung makati unti-unting nagiging Chinese community tulad ng binondo? Mukhang mabubuhay ang mga anak at apo natin under totalitarian system.

    https://en.wikipedia.org/wiki/Operation_Aurora#Attackers_involved

    https://www.forbes.com/sites/haroldfurchtgottroth/2017/05/08/chinese-government-helps-huawei-with-5g/#4fbcdeda6bae

    https://www.theguardian.com/technology/2010/jan/12/google-china-ends-censorship

    https://www.makeuseof.com/tag/huawei-phones-privacy/

    • Avatar for wewew wewew says:

      Syempre priority ang chinese firm. Ikaw ba naman ang depositohan ng mga chinese ang bank account para may panghapi-hapi at magastos sa birthday eh.

      Nagaduda tuloy ako na baka yung anti-droga kampeyn ay palabas lamang, Pero ang totoo kumikita si mang kanor sa mga chinese drug syndicate, yung mga nasa likod ng syndicate. Ang inatira lamang ay yung mga galamay. Haha!

    • Avatar for royor royor says:

      do you know any western company here in the Philippines? I think there is a lot but you guys just applied to a Chinese owned company and started to compare everything. Your Brief is made in China by the way even when you are inside your mother’s womb those medicines your mother take in was also made in China. We Filipino are really born with the perks of crustaceans (CRAB MENTALITY) this should be in Mortal Kombat Finisher. Hypocrite.

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