President Duterte’s plan to resolve telco woes
President Duterte’s 3rd SONA concluded yesterday and it included information about his plans to solve the country’s internet problems. We’ve all been waiting for the entry of a third Telco player that can finally shatter the duopoly of Globe and Smart. With the President’s speech yesterday, it seems that we’re getting closer to seeing that happen.
The administration just ordered the existing Telcos, via the National Telecommunications Commission, to lower their interconnection rates from Php 2.50 to Php 0.50. This makes it possible for the third Telco player to enter the market at lower fees and also to lower the cost of services for consumers. Not to mention, this makes it easier for the new player to access already existing networks.
We shall, therefore, lower interconnection rates between all industry players. Not only to lessen the cost to the consumers as it will also lower the costs [for the] incoming player to access existing networks, [thereby creating] a market environment that is more conducive to competition – President Duterte
Not only that, the President also declared that the third position is open to all local and foreign entities. Provided that they give the best services for the most reasonable prices.
The terms will be fair, reasonable and comprehensive. It will be inclusive so it will be open to all interested private parties, both foreign and local. The only condition is that the chosen entity must provide the best possible services at reasonably accessible prices – President Duterte
A draft of the Terms of Reference for the third player is already present, which means its only a matter of time until we’re finally introduced to a new Telco.