Japanese telecom firm eyes Philippine entry

By Ashley Erika O. Jose, Reporter

A JAPAN-BASED telecommunication company is seeking to enter the Philippine market, adding to two US satellite service providers whose applications are already in advanced stages, according to the Department of Information and Communications Technology (DICT).

“There is one Japanese company that applied. It is a full-blown telecommunication provider, with both satellite and terrestrial,” Information and Communications Technology Secretary Henry Rhoel R. Aguda told BusinessWorld on the sidelines of a labor summit on Monday.

He declined to identify the company, saying the application remains at an early stage.

“So, now we have three applicants — the two US companies and this Japanese company,” he said.

The entry of more foreign telecommunication providers comes after the enactment of the Konektadong Pinoy Act, which liberalized participation in the data transmission sector by removing the congressional franchise requirement for qualified industry players.

The measure, which lapsed into law in August last year, aims to streamline permitting and licensing procedures and promote infrastructure sharing to improve connectivity services and competition.

Its implementing rules and regulations were signed in November.

Under the measure, data transmission industry participants may build, establish, maintain, lease or operate data transmission networks and facilities without securing a legislative franchise.

Last month, the DICT said two US-based satellite providers are expected to begin operations in the Philippines this year, with their applications already under advanced review by the National Telecommunications Commission.

Last year, the DICT said seven foreign companies had expressed interest in entering the Philippine market after the release of the law’s implementing rules.

PLDT Inc. said in May that the entry of satellite telecommunication providers is unlikely to significantly alter market dynamics in the near term because of coverage limitations and the high operating costs associated with direct-to-cell services.