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China Telecom will become the third telecom company in the Philippines

  

Recently, the consortium established by China Telecom Corporation Limited (hereinafter referred to as "China Telecom") with Philippine partner Udenna Corp. and its subsidiary Chelsea Logistics Holdings Corp. (hereinafter referred to as "China Telecom Udenna Consortium") was announced by the Philippine National Telecommunication Commission (NTC) as the third temporary telecom company in the Philippines, The consortium will try to break the monopoly situation of Philippines operators Globe Telecom and PLDT.

The telecommunications regulator uses the HCLoS system to determine the bid winner, who needs to make commitments on population coverage, broadband speed and investment spending for more than five years. Of the three bidders, only China Telecom Udenna consortium passed the detailed evaluation after completing all requirements.

"The final rating of China Telecom Udenna consortium is 456.80 points (out of 500 points). Considering that it can provide the highest level of service, the selection committee announced that China Telecom Udenna consortium is a temporary NMP (a new major participant), but China Telecom Udenna consortium must go through the document verification stage to officially become a temporary NMP." Ella Lopez, chairman of the NMP Selection Committee, said.

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China Telecom's entry into the Philippines has not been finalized

However, China Telecom's entry into the Philippines has not yet been finalized. China Telecom Udenna consortium faces legal challenges because the Sear consortium participating in the bidding at the same time claims that it has signed an exclusive contract with Mindanao Islamic Telephone Company (Myslate), the franchise holder of China Telecom Udenna consortium. According to the agreement, without the prior formal consent of DigiPhil Technology [a subsidiary of TierOne] and members of the Sear Consortium, Mislatel shall not have the franchise rights and franchise rights used by others.

Raoul Creencia, lawyer of Sear Consortium, said that although the contract did not prohibit Mislatel from joining other groups, DigiPhil had a "right of first refusal".

The consortium supported by Chavit Singson plans to lodge a complaint in Makati or Pasig District Court of Justice (RTC), "to prevent Mislatel from allowing its franchise rights to be used by others without the prior consent of DigiPhil counterparties".

"If Mislatel will be judged to be in breach of the contract, then he is not qualified to cooperate with it, so there is no CF (Congress franchise), which is a fatal defect for the Udenna consortium of China Telecom," said Creencia.

At the same time, NTC requires the winning bidder to ensure that all data submitted to the telecommunications regulatory authority are true. Rio said that the Udenna consortium of China Telecom needs to submit its organizational structure within 90 days. If the organization structure is not submitted, it will lead to failure, and the bid winning will be postponed to the second participant.