DITO CME Holdings Corp. said the Konektadong Pinoy Act will not necessarily bring down service costs immediately because of continuing infrastructure gaps, particularly cellular towers.
“The problem is that our towers are few compared to other countries,” DITO CME President and Chief Operating Officer Donald Patrick L. Lim told reporters on Monday.
“Hopefully, more towers will be set up. Because if you get more people and companies in, it will not automatically make services cheaper or faster because all of it still has to cross the highway, which is the tower,” he added.
He said more providers will not immediately result in cheaper telecom services.
“It’s not a free-market economy because there are also infra challenges. So hopefully, everyone can also invest, but… it’s not as easy as you think,” he added.
The law, also known as the Open Access in Data Transmission Act, streamlines licensing for new entrants to boost competition in data transmission. It lapsed into law on Aug. 24.
The Department of Information and Communications Technology has committed to complete the law’s implementing rules and regulations (IRR) within 90 days.
Separately, Mr. Lim said the investment of Singapore’s Summit Telco Corp. Pte. Ltd. in DITO CME is expected to be completed within the year.
“It should be done this year … We have to clean it up,” he said, noting that the parties are still fine-tuning the details of the deal.
“Our bosses are just talking to one another and ensuring that the transition will be (smooth). Because if you put in money, of course you want things fixed,” he added.
The transaction involves the sale of up to 9 billion DITO CME shares.
This year, the company is planning to raise up to P26.53 billion to ramp up the operations of DITO Telecommunity Corp.
It is also planning to raise an additional P28.83 billion over the next five years via private placements. — Justine Irish D. Tabile