New telco RED Broadband to operate next year

New telco RED Broadband to operate next year

ANOTHER telecommunication company (telco), RED Broadband, will join the competition in 2021, National Telecommunications Commission (NTC) chief Gamaliel Cordoba said on Monday.

Red Broadband is owned by Meralco (Manila Electric Company).

Cordoba said Dito Telecommunity Corporation (Dito Telecoms) is also expected to challenge the two incumbent giants— Globe and Smart beginning next year.

He made the remark on Monday during the hybrid hearing held by the Senate on the proposed measures renewing for another 25 years the franchise of Dito Telecoms and the granting of franchise to Instant Data, Incorporated.

The NTC commissioner said that Globe and Smart have infused more money to improve their facilities as they view Dito Telecoms as a “threat” or tough competitor.

“What we’re seeing is that something good will happen next year because Dito Telecoms will enter [the market] and they are very aggressive,” Cordoba said.

“That’s why our two incumbents will face stiff competition. And that is the best whip, that is the best stick for them,” he added.

“And RED Broadband will also join the competition. So, we will expect intense competition starting 2021. Hopefully, this will lead to better and efficient [internet] service,” he said.

Sen. Mary Grace Poe, chairman of the Committee on Public Services, who presided over the virtual hearing, lamented the poor internet service nationwide.

“Due to the pandemic that led us to be dependent on everything online, we are now more painfully aware of the sad state of internet services in our country,” Poe said.

She cited a survey held by the Department of Information and Communications Technology that showed that almost 64 percent of communities have no telco towers in their areas.

Based on the survey, 84 percent of Filipinos had no internet access while 70 percent of villages had no fiber optic cables.

source: manila times



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