Mindanao Islamic Telephone Company is confirmed as the Philippines' third telecommunications provider. The consortium is spearheaded by Dennis Uy, a Sino-Philippine Entrepreneur, and 40 percent of the shares are owned by China Telecom.
The National Telecommunications Commission confirmed the news on the eve of Chinese President Xi Jinping's visit to the Philippines. The consortium is composed of the Udenna Corp, privately owned by Mr.Uy, its subsidiary Chelsea Logistics, and China Telecom. China Telecom will invest $4.9bn on a five years agreement. The new player is expected to break the duopoly of PLDT and Globe Telecom.
PLDT and Globe are often criticized because of their poor internet connections. Two companies deny the complaint claiming that they are offering quality services and affordable prices.
The critics of Philippine President Rodrigo Duterte, along with bidding competitions of Mislatel, question the awarding of the contract to the consortium. They are claiming that the agreement is questionable since Mr. Uy came from the hometown of the President, Davao city, and they are claiming that his contribution to the presidential campaign is equivalent to $574,000.
Senator Antonio Trillanes IV, the president's most aggressive critic said that he wants to "scrutinize" the process of granting the agreement to Mr. Uy. He said that he believes that they need to invite Mr. Dennis Uy to the Senate because he has some questions that need a direct answer. During the Senate inquiry, Mr. Uy is not present but he was represented by other officials including spokesperson Adel Tamano.
Political opponents fears that it could pose as a threat to national security especially since the Philippines and China is in a maritime dispute in the South China Sea.
World leaders are currently questioning whether to allow Chinese technologies like Huawei into their market. Countries like the United States, the United Kingdom, Australia, and New Zealand expressed their doubts in purchasing 5G telecommunications equipment from China's Huawei. They fear that they might risk national security when using Chinese tech.
Mr. Uy defended China Telecom's role in the agreement during the interview with the Financial Times after the signing of the contract. He said that China Telecom is among the world's biggest and most advanced in terms of technology. He added that there is no doubt in the business potential the Chinese market can bring. Mr. Uy endorsed the President's economic and political leaning to China during the interview.
