Ghost Month: August 11 - September 6

"Suspended" Philippine Telegraph and Telephone Corporation
suspended stock na baka mabuhay muli

Philippine Telegraph & Telephone Corp. (PTT) was incorporated on November 14, 1962 as a diversified telecommunications entity catering to the corporate, small/medium business and residential segments across the nation.

On June 20, 1964, PTT was granted a 25-year national legislative franchise, Republic Act (RA) No. 4161 for telecommunications activities. An amendment to the franchise was made in 1967 under RA 5048 granting the Company, among others, equal privileges against any competing franchise.

PTT listed on January 10, 1990 for the trading of its common shares but requested voluntary suspension of trading effective December 13, 2004.

Source: SEC Form 17-A (2009)

Attached Files Image(s)
...third telco Tongue

PT&T signs agreement with Chinese company

PHILIPPINE Telegraph and Telephone Corporation (PT&T) is looking to team up with a Chinese company to provide free wireless broadband services in public areas around the country.

In a disclosure to the stock exchange, PT&T Senior Vice-President and Chief Information Officer Arturo T. Falco said the company has signed a memorandum of agreement (MoA) with Chengdu Zhongxing Tiantong Technology Corp. The MoA will be effective for 90 days.

“The purpose of the agreement is to explore the feasibility of engaging in a project that will provide free wireless broadband services in designated public areas before, during and after the occurrence of disasters in any part of the country,” he said.

PT&T and Chengdu Zhongxing Tiantong Technology will conduct a feasibility study on the project.

“Actual participation of the each party shall be discussed after the conclusion of the said study and will be reflected in the definitive agreement that may be reached by the parties,” Mr. Falco said.

In an interview with BusinessWorld last week, PT&T Chairman Salvador B. Zamora II said the company will tap Chengdu Outwitcom, a wireless communication and networking technology provider and a wholly owned subsidiary of Chengdu Zhongxing Tiantong Technology Co. for the broadband network.

Mr. Zamora said Chengdu Outwitcom was able to roll out Wi-Fi service in the outdoor areas of the Cultural Center of the Philippines (CCP) complex during the 31st Association of Southeast Asian Nations (ASEAN) Summit and meetings last month.

“It was their contribution for ASEAN 50. Their signal was so strong that even the delegates who were inside the ASEAN 50 were using their Wi-Fi. Most delegates ended up using their facilities,” he said, adding the company was able to roll out the service in just one week.

PT&T is also in “preliminary” talks with China Telecom, which Malacañang earlier said the Chinese government picked to enter the Philippine market.

While hopeful of a deal with China Telecom, Mr. Zamora said they will still continue its national broadband network rollout “with or without” the Chinese company.

...tagal naman nitong matanggal sa suspension para ma-trade na ulit Big Grin ceiling ito kaagad 3 days Big Grin

LG to partner with PT&T for 3rd telco slot

Malacanang has reported that South Korea’s LG Corp. is interested in striking a joint venture with Philippine Telegraph and Telephone Corp. (PT&T) in  a bid to enter the Philippine telecommunications industry.

Presidential Communications Secretary Martin Andanar made the revelation even as China Telecom gears to be the third player in the country, as earlier announced by President Duterte.

Citing his own sources, Andanar said LG is the Korean company that wants to partner with PT&T.  

“It will become a very exciting telco industry for the Philippines this 2018,” he told DZBB Radio Friday night.   

During a Cabinet meeting last Monday, the Department of Information and Communications Technology (DICT) reported to the President the players who want to enter the telecoms industry.

Following Duterte’s latest pronouncements on China Telecom, the Korean firm expressed interest in challenging the duopoly of Smart Communications and Globe Telecom.

China Telecom, however,   has not found a local partner with an existing franchise to comply with the country’s constitutional provision limiting foreign ownership to 40 percent.

As far as the administration is concerned, Andanar said the offer is also open to other countries which want to compete with Smart and Globe.

“Whoever has the best offer in the bidding wins. It’s not a monopoly when it comes to a third player. We really want the best,” he added.

...actually, this article is a good argument to still buy TEL and GLO, especially now that both are down in price

No miracles in sight

Just recently, Philippine Telegraph & Telephone Corp (PT&T) revealed that it is in an advanced stage of partnership discussions with a South Korean telecommunications company.

Last year, PT&T said it was exploring a possible partnership with China Telecom to become the third major telecommunications provider in the Philippines.

While PT&T would not disclose the identity of its prospective foreign partner, a Malacañang official disclosed that it is South Korea’s LG Corp. that the former is in talks with.

Meanwhile, China Telecom, according to news reports, has not found a local partner.

Unless they are able to put their money where their mouth is, all these talk about partnerships and plans to become the third telco in the country mean nothing.

Remember less than three years ago when reports that Australian telco Telstra was in talks with San Miguel Corp. (SMC) to become the third telco. In March of 2016, SMC announced that it had ended the talks because they were unable to come up with commercial arrangements that would have enabled them to proceed. For his part, Telstra CEO Andy Penn said it was obviously crucial that the commercial arrangements achieve the right risk-reward balance for all involved.

The problem with this third telco player talk is that it stems from the assumption that the problem with the local telecommunications industry is the current duopoly of PLDT and Globe Telecom, and that a third telco would be able to solve the problem of high internet costs, slow speeds, and unreliable connection.

Telstra may have realized that even if it was willing to spend $1.4 billion for a 40 percent stake in its joint venture with SMC, that amount was just a drop in the bucket and for many years, the Australian company would probably have to put in more funds to keep the venture going.

Goldman Sachs earlier warned of a potential cash burn for Telstra’s Philippines project, as it estimated that the project could cost both parties $3.5 billion over a three- to four-year period, more than double what Telstra planned to invest.

There was simply no assurance that the venture would make money. Operating a viable telco in the Philippines is simply expensive.

Tong said that a key problem was the lack of mandatory infrastructure sharing, which would force any new player to build their own mobile base stations and backhaul links. This is an expensive proposition considering that the nation is made up of more than 7,000 islands. Building a network across islands and seas is not as simple as building one across contiguous territory.

In the Philippines, telecom companies build or expand that network without any support from the government. Worse, government has made it difficult for them to expand and put up cell sites given the number of permits that need to be secured, not to mention the need to convince the barangay and the homeowners’ association that the residents are not going to get sick from radiation.

Acting Information and Communications Technology Secretary Eliseo Rio himself admitted that the roughly 25 permits needed to build one cell site tower has kept the total number of cell sites in the country at around 20,000 when the country needs at least 67,000.

The Philippines is said to be the only country in the ASEAN region where the government does not provide any infrastructure funding support for the telecommunications sector.

National Telecommunications Commission (NTC) chief Gamaliel Cordoba said at the recent Philippine Telecoms Summit that all other ASEAN countries have telecoms networks that are wholly-owned, partly financed, or operated by their respective governments.

It is only in the Philippines that the broadband networks are constructed, owned and operated by private companies, he emphasized.

In Singapore, Malaysia, Myanmar, Thailand, Cambodia, Indonesia, Vietnam, Laos and Brunei, the major telecom firms are either partly or wholly-owned by the government or are being assisted by their respective governments in term of financing the telco infrastructure and building the national broadband network.

Here, our two major telecommunications company have managed to survive on their own, with little, if any, help from the public sector.

Our telecom firms have spent as much as 30 percent of their revenues on capital expenditure compared to the global average of 16 percent. Those in Singapore and Malaysia are spending less at 15 percent.

The idea of a third telco player is good, but unless government realizes and admits what the fundamental problem is, then we cannot expect any major changes to happen. Especially not in the short to medium term.


PT&T settles P7-M SEC fine for failure to comply with reportorial requirements

THE PHILIPPINE Telegraph and Telephone Corp. (PT&T) on Thursday said it has paid the P7-million fine slapped by the Securities and Exchange Commission (SEC) for its failure to submit audited financial statements and annual reports, among others.

In a disclosure to the stock exchange, PT&T said the SEC Markets and Securities Regulation Department (MSRD) order dated June 5, had imposed a P7-million penalty on the company and indefinitely suspended its registration statement, due to the previous management’s failure to comply with reportorial requirements.

“PT&T is cited and held liable for violating the pertinent provisions of Rules 17, 20 and 68 of the implementing rules and regulations of the Securities Regulation Code, as amended, for PT&T’s failure to (i.) conduct its Annual Stockholder’s Meeting and file (ii.) its Audited Financial Statements and (iii.) Annual Information Statements,” the SEC MRSD said in its order.

The SEC ordered PT&T to submit the following within four months: its 2016 annual report; 1st, 2nd and 3rd quarter reports for 2017; and an affidavit confirming there are no other complaints against the company. The company was also directed to amend and file its registration statement, and immediately conduct an annual stockholders’ meeting.

The SEC said the suspension of PT&T’s registration statement will only be lifted after it has fully complied with the directives under the order.

For its part, PT&T said it has already settled the P7-million penalty.

“The said payment absolves PT&T from all liabilities arising from the deficiencies in its reportorial and compliance requirements committed during the time of the company’s previous management. The settlement of this monetary penalty will allow the company to operate as a going concern under its new management ,” the company said.

At the same time, PT&T said it has also paid a fine of P88,000 to the SEC Corporate Governance and Finance Department for its failure to comply with SEC memorandum circulars that require certain information be made available on the official websites of publicly listed companies.


...hataw 'to pagbalik sa market

PT&T appeals for rehab exit

THE PHILIPPINE Telegraph and Telephone Corp. (PT&T) has appealed to the regional trial court (RTC) of Makati City to be allowed to leave its court-assisted corporate rehabilitation to proceed with its operations.

In a disclosure to the stock exchange late on Tuesday, the telco company said it filed a request to the Makati RTC on Monday to exit rehabilitation, given that it will be subjected to the requirements as outlined in the approved Rehabilitation Plan.

“Part of the compliance is for PT&T to conduct a stockholders’ meeting to increase its authorized capital stock. This will enable PT&T to pay its debts through debt-to-equity conversion as mandated by the approved Rehabilitation Plan,” it said.

PT&T is currently lobbying for its 14-year rehabilitation plan for its P8.8-billion debt at the Supreme Court. The rehabilitation plan was reversed in a decision by the Court of Appeals in May 2017. But in its recent appeal, it said it wants to leave the program.

“The exit from rehab is well within the plan of our new shareholders and another proof point that PT&T is serious in it’s intention to be a major player in the Philippines telecommunications industry,” PT&T president and chief executive officer James G. Velasquez said in a statement on Wednesday.

The telco company, which was once PLDT, Inc.’s biggest rival in the telco industry, has expressed its interest to participate in the government’s search for the so-called “third telco player.”

“PT&T’s exit from receivership enables the company to raise additional capital in the stock market to fund our expansion plans, both in fixed broadband and beyond,” PT&T chief operations officer Miguel Marco A. Bitanga said in the statement.

In March, the company signed an agreement with state-owned National Transmission Corp. (TransCo) to allow for the use of the government’s national fiber optic backbone facility.


...guys ready your money ok? Tongue

PT&T gets go-signal to exit corporate rehabilitation

THE Philippine Telegraph and Telephone Corp. (PT&T) said a Makati Regional Trial Court (RTC) granted its request to exit from court-assisted corporate rehabilitation, giving a boost to its plan to participate in the bidding for the third telecommunications player.

In a disclosure to the stock exchange, PT&T said the Rehabilitation Court, or Makati RTC Branch 66, has allowed its exit from rehabilitation “subject to compliance with certain requirements in line with the approved rehabilitation plan.”

The company said it is willing to follow its rehabilitation plan, which includes conducting a stockholders’ meeting to increase its authorized capital stock and to pay its debts via debt-to-equity conversion.

PT&T has a case in the Supreme Court concerning its P8.8-billion debt, and is supposed to undergo a 14-year rehabilitation plan.

“The exit from rehab is well within the plan of our new shareholders and another proof point that PT&T is serious in it’s intention to be a major player in the Philippines telecommunications industry,” PT&T president and chief executive officer James G. Velasquez said in a statement last week.

The telco, which was once PLDT, Inc.’s biggest rival in the industry, has expressed its interest to participate in the government’s search for the so-called “third telco player.”

In March, PT&T signed an agreement with state-owned National Transmission Corp. (TransCo) to allow for the use of the government’s national fiber optic backbone facility. 


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