PLDT-Smart, Globe welcome entry of 3rd telco player

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Metro Manila (CNN Philippines, November 7) The two existing telecommunications companies in the country on Wednesday welcomed the entry of a third player, which is seen to break their long-standing duopoly in the market.

The government has declared Mislatel Consortiuma joint venture of Dennis Uy's Udenna Corporation, its logistics arm Chelsea Logistics Holdings and China Telecommunicationsas the country's provisional third telco.

In separate statements, PLDT, Inc. and Globe Telecom said the entry of a challenger will lead to a tighter market competition that will benefit the industry and consumers.

"We welcome competition, that's really part of the business and we think that it will be good for consumers. It will be good for the industry, and the country," Ramon Isberto, PLDT's public affairs head, told CNN Philippines in an interview.

"It's going to be a colorful time. I would expect that competition to be there and it would be a very active market. It's been active even with just two players," he added.

Isberto said lower cost of telco services is "one of the possible effects" of the competition brought by the challenger.

"Even before prices have been going down and, if you look at it, the telco industry is one of the few industries in the country where prices have been going down consistently over the past 10, 20 years," he said.

Globe, meanwhile, said it also welcomes the new player "which is seen to help foster a healthy competitive environment and ultimately benefit consumers."

"The new player has the potential of opening up new sources of revenue streams for telcos while providing consumers with more innovative products and services," it said in a statement.

The Ayala-led company said it hopes the government will "equally support" the existing telco companies amid the entry of a new player.