DAVAO-BASED businessman Dennis A. Ouy is no stranger to entering new industries and succeeding in them. He intends to continue to succeed when his group won a third telecommunications license.
During the bilateral meeting between the Information and Communication Technology Department (DICT) and China Telecom Corp., Ui assured that his group would effectively use the license granted to Consortium Mislate – the group led by the growing magnate Udenna, and the Chinese Internet provider.
“I promise you that we will work very hard towards achieving our common goals better, cheaper and more widely available telecommunications,” he said. "I am not a stranger to enter new industries and be a destroyer for the benefit of consumers." Huy, who has close ties with the President of Duterte, has reserves of energy, water, oil, logistics, shipping, property, environmental trade, education and, most recently, before telecommunications, food.
“We accept the responsibility and challenge to become a new major player,” he said.
How exactly is Mislatel going to do this?
Adel A. Tamano, a representative of Mislatel, said that while his group will build its infrastructure from scratch, Mislatel intends to work with larger and smaller players to quickly deploy its investment program.
“For our deployment, we want to cooperate with them, not with partners in fairness, but as technical and resource partners. This is a new model that we want to support, ”he said.
Tamano was referring to smaller players, such as the unqualified third sellers of telecommunications companies Philippine Telegraph and Telephone Corp. and Sear Communications Inc., as well as Smart Communications Inc. and Globe Telecom Inc.
But already now, China Telecom can hold up to 40% of the shares of the future company, which will be created for the third telecommunications agreement “Joint Letter of Intent” with DICT for connecting the Chinese company’s submarine cable system for a government cable landing station.
China Telecom’s fiber optic submarine cable system will directly link Hong Kong, the United States and the Philippines.
“This is our first step in creating the foundation for faster and cheaper Internet services for Filipinos. Through this partnership, we are creating our international gateway, which is crucial for world-class telecommunication services, ”said Tamano. In addition, the group, in his words, “prepares” its research on implementation.
Mislatel has three months to complete all necessary requirements related to post-qualification procedures for its confirmation.
In accordance with the requirements after qualification, Mislatel must register as an official through the Securities and Exchange Commission. He must also obtain the necessary permits from the Philippine Competition Commission.
He must also comply with the requirements for the payment of capital in the amount of at least $ 10 billion. US and comply with the relevant provisions of the tendering agreement.
Mislatel must also seek congressional approval for any sale or transfer of fixed capital, transferring control over the equity interest of another organization, as provided for in its congressional franchise, in which case the franchise for the group is Mindanao Islamic Telephone Corp.
It must also submit a five-year business plan for the entire commitment period, including capital and operating expenses, sources of funding, projected cash flow, planned technology deployment, marketing plans and programs, indicative tariff rates, key risks and mitigation strategies, and also existing agreement with existing technology players, if any.
Mislatel should also present its deployment plan, which should include the following: an indicative start to commercial operations, detailed schedules that correspond to its obligations, coverage, technology, equipment used, target subscribers, service rates and a detailed description of how it ensures that its network and facilities will not compromise national security.
Upon completion of the submission of the post-qualification materials, the regulator should review the documents for the 15-day commitment.
After that, a new major player must submit its execution safety – in the case of Mislatel, P25.7 billion – within 15 days.