It looks like we’re already seeing the effects of the planned arrival of China Telecom in the Philippines. The news about the upcoming third telco player was all over the headlines just last week, and now, PLDT has already reacted in an enormous way.
According to Manny V. Pangilinan, PLDT CEO and President, the company will be having a “historic high” capital expenditure of Php50 billion for next year. Pangilinan also added that they are just trying to get ready as early as first quarter of 2018.
This is in-line with President Rodrigo Duterte’s order to have the third telecommunications company “up and running” in the first three months next year. The president warned the judicial courts to not interfere with the project and even threatened them to not issue restraining orders.
Going back, Pangilinan said that the Php40 billion will come from their EBITDA (earnings before interests, tax, depreciation, and amortization), while the extra Php10 billion needed will come from the selling of the company’s assets.
It looks like the duopoly in the telecommunications industry is about to break. And judging by Pangilinan’s words, it looks like PLDT is poised to compete. All of these benefits no one but the consumers, so it’s good news. Let’s just wait and see how the other player, Globe Telecom, reacts to these changes.
Source: GMA News