Udenna Corp. and Chelsea Logistics Holdings Corp. of Davao-based businessman Dennis Uy signed a $5.4-billion investment agreement with China Telecommunications Corp. to develop and operate as the country’s third major telecommunications player.
The signing of the investment agreement reiterated the group’s commitment to take up the challenge of providing better telecommunications services in the country.
Udenna, Chelsea, and Chinatel earlier committed to invest P279 billion ($5.4 billion) in Mindanao Islamic Telephone Co. Inc., which on November 7, 2018 was declared as the provisional New Major Player by the National Telecommunications Commission.
“This is a historic occasion,” said Udenna chairman Uy.
“This is another step forward in realizing Udenna’s vision to improve the lives of Filipinos. Everything that we do is about making lives better not just for this generation, but for the next generation. And that is happening here. Thank you to our partners and to all for being a part of this journey,” he added.
Chinatel welcomed the partnership, saying it aimed to promote collaboration by advancing the availability of new and emerging technologies.
The landmark investment agreement solidified the Philippine government’s commitment to improving the country’s telecommunications industry through the entry of a new telco operator that would challenge the dominance of the two giant incumbents amid persistent calls from consumers for improved services.
Mislatel committed to invest P150 billion in its first year of operations.
In terms of Internet speed, the group committed to provide 27 megabits per second in its first year, and 55 mbps in five years.
The company plans to cover 84 percent of the population in five years and 34 percent in its first year of operation.
The NTC will assign the frequencies 700 megahertz, 850 MHz, 2100 MHz, 2010 MHz, 2.5 GHz, 3.3 GHz, 3.5 GHz and 10.5 GHz to the new major player.