Sen. Grace Poe has lambasted DITO Telecommunity for its failure to anticipate the funds it needed to become a major player in the Philippine telecommunication industry.
Citing an analysis from consulting firm CreatorTech, the senator is worried DITO cannot meet its commitment of USD3 billion (around Php144 billion) expenditure during 2021, its first year of operation.
In early 2020, DITO drew USD500 million (around Php24 billion) from the Bank of China, its sole lender, and the company is seen to resort to borrowing more money from the said bank as it has so far failed to raise its capital via equity. Its debt-to-equity ratio is currently at 70-30.
DITO risks losing its franchise license in 2023 should it fail to obtain more funding and fulfill its infrastructure commitments. Poe last month deferred DITO’s franchise renewal as she wanted the company to prove it can fulfill its obligations.
- Fears of China cyber threats raised anew at third telco hearing
- DITO built more cell towers than its 2020 target
Besides investor woes, DITO faces implementation challenges due to the country’s geographical condition and cybersecurity issues.