PLDT, Huawei forge USD 28.5 million deal to provide faster internet in Philippines

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Representational image Carlos Barria/File Photo/Reuters

As the entry of China Telecom to the Philippines is becoming brighter, local telecommunications companies Philippine Long Distance Company and Smart Communications, have forged a partnership with China Telecom's rival Huawei, investing USD 28.5 million for the initial partnership.

Huawei, a global information and communications technology leader, will take part in the 15-month agreement to undertake improvements in Smart's online charging platforms and electronic loading for subscribers.

PLDT Group of chief corporate services officer Ray Espinosa said the partnership will involve consolidating similar applications for different brands under one system and streamlining through a simplified process.

PLDT Chief Executive Officer Manuel Pangilinan also said that through this partnership, telecommunication services will be much more efficient, agile and resilient in delivering an array of digital services.

On the other hand, Wilson Zang, president of Huawei revenue management said that Huawei's software solutions will be offered to PLDT existing market and will be delivered in collaboration with PLDT.

Philippine President Rodrigo Duterte earlier announced that he was supporting the entry of a foreign player to provide internet and other telecommunication services to the Philippine market because the existing internet service providers are too slow.

China then suggested China Telecom as the possible company that will join the competition in the local internet service provider industry.

PLDT-Smart and Globe Telecom are the only two companies providing internet services to the Philippine market where more than 50 million are active online users occasionally struggling with the slow internet service.

Millions of subscribers in the Philippines have complained to the office of the president to address the slow internet signal in the country.

Moreover, internet subscribers also claimed that the government should not only allow one foreign player to get into the Philippine market but it should also be opened to countries that could offer better internet services such as companies from Australia, UK, US and Korea.

Meanwhile, presidential spokesman Harry Roque said that the government's invitation extended to China Telecom was to strengthen bilateral ties with China.

"The entry of China Telecom will also improve poor telecoms in the country which has one of the region's slowest internet speed," Roque added.

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