The House of Representatives approved a bill granting 25-year franchise to DITO Telecommunity Corp.
The House of Representatives on Monday approved the 25-year franchise bid of the third telco player in the Philippines, the DITO Telecommunity Corp.
Voting 240-7-7, the lawmakers approved House Bill No. 7332 which renewed DITO Telecommunity Corporation’s franchise to “construct”, “establish”, “install”, “maintain”, and “operate” wire and/or wireless telecommunications system in the country.
DITO was chosen as the third major telco player in the Philippines way back in 2018 and was owned by Davao-based businessman Dennis A. Uy’s Udenna Corp. and a state-run China Telecom.
It was named as the third major telco player in the country in order to break the duopoly of Smart and Globe in the telecommunications industry and was seen to improve the internet service in the Philippines.
Under its franchise, DITO Telecommunity Corp. was obliged to cover at least 37% of the population, with an average minimum internet speed of 27 Mbps (megabits per second). They’re also required to put up 2,500 cell towers by July 8, 2020.
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However, in a Senate hearing way back in early July, Adel Tamano – the chief administrative officer at DITO Telecommunity Corp. – revealed that the company had only completed 300 operational cell sites, which was less than a quarter of 1,300 cell sites needed in order to meet their target.
Citing delays brought by the pandemic, DITO Telecommunity Corp. was able to obtain its “six-month reprieve” on its commitment.
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