House resolution calls for Udenna-China Telecom control of MISLATEL

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Metro Manila (CNN Philippines, December 4) — A lawmaker has called for Dennis Uy's Udenna Corporation and foreign state-owned China Telecommunications Corporation (China Telecom) to have more control of the Mislatel consortium.

The House resolution was filed by Quirino Representative Dakila Cua, who is a member of the committee on legislative franchises. The Mindanao Islamic Telephone Co., Inc. (MISLATEL) holds the legislative franchise to operate a telecommunications business. Congress granted the franchise in April 1998.

It has partnered with Udenna and China Telecom to form the Mislatel Consortium which won the bid to become the third major telco.

The Mislatel Consortium's ownership structure is 35 percent Udenna, 25 percent Chelsea Logistics Holdings Corporation, and 40 percent China Telecom which is owned by the Chinese government. Chelsea Logistics Holdings is a subsidiary of Udenna.

Should the resolution be approved, Udenna and China Telecom will have even more control of company decisions than the franchise holder.

"In accordance with the Binding Bidding Agreement duly executed by and among MISLATEL, Udenna, Chelsea, and China Telecom dated 6 November 2018 and in compliance with the requirements of NTC Memorandum Circular 09-09-2018 or the Rules and Regulations on the Selection Process for a New Major Player in the Philippine Telecommunications Market, Udenna, Chelsea and China Telecom will subscribe into the increase in shareholdings of MISLATEL, which would result in Udenna, Chelsea and China Telecom owning majority and controlling interest in MISLATEL," the resolution read.

Mislatel Consortium plans to operate by late 2019 or early 2020.