Mislatel signs USD 5.4-billion deal with China Telecom for PH third telco

Mislatel signs USD 5.4-billion deal with China Telecom for PH third telco

Udenna Corp. has signed a USD 5.4-billion deal with China Telecom for the development of Mislatel, Philippines' official third telco.

The signing of the deal was done on April 25, 2019 during the 2nd Belt & Road Forum in Beijing, China. The goal of this agreement between Dennis Uy's Udenna Corp. and China Telecom is to formalize their "mutual undertakings and obligations" to become the country's third telco provider.

"This is a historic occasion. 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," said Udenna chairman Dennis Uy.

The USD 5.4 billion (roughly PHP 281.4 billion) deal is expected to boost the development of the country's third telco to challenge PH's two telco giants, PLDT (Smart) and Globe Telecom. This is in line with the order of President Rodrigo Duterte in breaking the duopoly in the telecommunications market.

Mislatel Consortium was comprised of Dennis Uy's Udenna Corp. based in Davao and its logistics arm, Chelsea Logistics Holdings, partnered with the state-owned China Telecom.

Mindanao Islamic Telephone Company, Inc. (Mislatel) was declared as the provisional 3rd telco player last November 2018. The new telco company also promised to provide up to 55 Mbps of Internet speed, covering 84.01 percent of cumulative coverage, with a capital expenditures of PHP 257 billion for five years.

Source: https://news.abs-cbn.com/business/04/26/19/udenna-corp-china-telecom-sign-54-billion-deal-for-third-telco-mislatel

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