TransCo and PT&T keen to work with China Telecom in third mobile operator venture

Filipino companies Philippine Telegraph & Telephone Corp (PT&T) and state-owned power utility National Transmission Corporation (TransCo) are reportedly in contention for the 60% share of the proposed joint venture with China Telecom that the government of President Rodrigo Duterte hopes will shake up the country’s wireless market. The Chinese government this week selected China Telecom as the company to invest in a third mobile operator in the Philippines, to compete with the de facto duopoly of PLDT and Globe. China Telecom will have a 40% stake in the new company, the maximum permitted by Philippines law for foreign investment. Duterte’s administration will now look to select a company to work with the Chinese, and PT&T is said to be already talking to China Telecom about investing in the new mobile business. PT&T’s chairman Salvador Zamora went on record in November as saying that he is looking for strategic partners to expand its broadband services and launch mobile phone operations in the next few years. Reuters now quotes Zamora as saying that he wants to sign a deal with China Telecom by the end of this week. In the meantime, TransCo has also thrown its hat into the ring with its president, Melvin Matibag, saying in a speech in Manila: ‘We can be the 60%. They [China Telecom] have the technical expertise in operating and TransCo has the facilities to offer. This will shorten the process.’