In Duterte’s Philippines, fears of slow internet trump fears of China

In granting a licence to a joint venture backed by China Telecom, the Philippine leader is going against the grain

But for social-media crazy consumers hampered by some of the slowest speeds in the region, national security isn’t the main concern

Reading Time:5 minutes

A supporter takes a selfie with Philippine President Rodrigo Duterte. Internet speeds in the country lag the region’s. Photo: AFP

Published: 12:45pm, 13 Jul 2019Updated: 3:10pm, 13 Dec 2019

From super-wired Singapore to bandwidth-guzzling Indonesia, consolidation has become the No 1 buzzword in Southeast Asian telecoms circles, as the industry reels from crimping revenue streams and the seemingly unending capital expenses needed to keep up with the latest technology.

The consensus thinking is that, by reducing the number of players through mergers, the sector’s margins will improve, allowing it to face the hefty cost of rolling out the next-generation 5G technology without facing too much pain.

But in the Philippines, where social media-crazy consumers have for years been stuck with poor service under a duopoly, the government of President Rodrigo Duterte has gone against the grain by adding a new operator.

Dito Telecommunity – 40 per cent owned by China Telecom – this week formally received its licences and control of a chunk of spectrum across six radio-frequency bands.

The new telco is promising mobile internet speeds to rival hi-tech Singapore’s. Photo: Reuters

The company, which is majority controlled by firms linked to Dennis Uy, a local tycoon and campaign donor of Duterte, has promised to light a fire under Globe Telecom and PLDT Inc.

The consortium was provisionally awarded the slot last year, and Uy signed the tie-up with China Telecom during the Belt and Road Initiative forum in Beijing in April.

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