Chinese-backed firm ends Philippines mobile telecom duopoly

Dito Telecommunity, a newly established telecom company backed by Chinese investors, launched operations in the Philippines on March 8 in a move to shake up the country’s long-standing duopoly of PLDT, which is backed by Japan’s NTT Group, and Globe Telecom, a joint venture between Philippine conglomerate Ayala and Singapore Telecommunications.

Dito kicked off commercial operations by launching mobile service in the central and southern provinces of Cebu and Davao in a first step. The company said it plans to gradually expand into more areas, including Metro Manila, in the coming weeks, local media reported.

Dito’s launch represents one of the largest Chinese investments in the Philippines so far. The telecom challenger is 60-per cent owned by companies controlled by Chinese-Filipino businessman Dennis Uy, who also serves as Dito’s CEO. State-owned China Telecom owns the remaining 40%, the limit for foreign investments in the Philippine telecom sector.

The choice of areas for the launch pays homage to Dito’s roots. Uy, who hails from Davao, and China Telecom used Mindanao Islamic Telephone, a dormant telecom company, as the vehicle for its successful bid in 2018 for a license to offer full-scale telecom services, including fixed broadband.

“The rationale for the third telco was to serve the underserved and to provide Filipinos with a better option [and] a wise choice,” Uy said during the launch.

“Competitive pricing strategy”

With the launch, Dito’s network already covers 37 per cent of the country’s population. That figure is expected to rise to 51 per cent next year, in line with its five-year commitments to the government, which also involve at least $5 billion in capital spending.

Dito previously said it aimed to grab a 30 per cent market share within a few years after its launch with a “competitive pricing strategy” to win subscribers.

Dito kicked off its business with an introductory offer of 199 pesos ($4) for unlimited text, calls and mobile data connection for 30 days, cheaper than offerings from its competitors. It also gave 3,000 free SIM cards and 300 mobile phones to health workers and others on the front line of the Covid-19 crisis.



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Dito Telecommunity, a newly established telecom company backed by Chinese investors, launched operations in the Philippines on March 8 in a move to shake up the country’s long-standing duopoly of PLDT, which is backed by Japan's NTT Group, and Globe Telecom, a joint venture between Philippine conglomerate Ayala and Singapore Telecommunications. Dito kicked off commercial operations by launching mobile service in the central and southern provinces of Cebu and Davao in a first step. The company said it plans to gradually expand into more areas, including Metro Manila, in the coming weeks, local media reported. Dito's launch represents one of...

Dito Telecommunity, a newly established telecom company backed by Chinese investors, launched operations in the Philippines on March 8 in a move to shake up the country’s long-standing duopoly of PLDT, which is backed by Japan’s NTT Group, and Globe Telecom, a joint venture between Philippine conglomerate Ayala and Singapore Telecommunications.

Dito kicked off commercial operations by launching mobile service in the central and southern provinces of Cebu and Davao in a first step. The company said it plans to gradually expand into more areas, including Metro Manila, in the coming weeks, local media reported.

Dito’s launch represents one of the largest Chinese investments in the Philippines so far. The telecom challenger is 60-per cent owned by companies controlled by Chinese-Filipino businessman Dennis Uy, who also serves as Dito’s CEO. State-owned China Telecom owns the remaining 40%, the limit for foreign investments in the Philippine telecom sector.

The choice of areas for the launch pays homage to Dito’s roots. Uy, who hails from Davao, and China Telecom used Mindanao Islamic Telephone, a dormant telecom company, as the vehicle for its successful bid in 2018 for a license to offer full-scale telecom services, including fixed broadband.

“The rationale for the third telco was to serve the underserved and to provide Filipinos with a better option [and] a wise choice,” Uy said during the launch.

“Competitive pricing strategy”

With the launch, Dito’s network already covers 37 per cent of the country’s population. That figure is expected to rise to 51 per cent next year, in line with its five-year commitments to the government, which also involve at least $5 billion in capital spending.

Dito previously said it aimed to grab a 30 per cent market share within a few years after its launch with a “competitive pricing strategy” to win subscribers.

Dito kicked off its business with an introductory offer of 199 pesos ($4) for unlimited text, calls and mobile data connection for 30 days, cheaper than offerings from its competitors. It also gave 3,000 free SIM cards and 300 mobile phones to health workers and others on the front line of the Covid-19 crisis.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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