Successful SMP Charity Held Last May 26 Saturday Jaro Metropolitan Cathedral, ILOILO. Thank You Donors

"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)
...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.


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