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The deal will finance Mislatel’s capital expenditure for the next 5 years
China Telecom has signed a $5.4 billion agreement with the Udenna Corporation to launch Mislatel – the Philippines’ long awaited third telco.
Mislatel was unveiled at the country’s new telecoms player in November 2018 but progress towards an actual launch of services has slowed in recent months.
“This is a historic occasion. This is another step forward in realising 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,” Udenna chairman, Dennis Uy, told reporters from ABS News, at the Belt and Road Forum for International Cooperation, in the Philippines.
The $5.4 billion deal will finance the company’s capital expenditure for the next 5 years, as it looks to rollout 4G and 5G network services across the Philippines.
Mislatel has pledged to provide superfast broadband speeds of at least 27Mbps to 37.03 per cent of the population in its first year of operation. Ultimately, Mislatel has said that it will provide speeds of 55Mbps to 84.01 per cent of the Filipino population by 2024.
Should Mislatel fail to deliver on any of its service level commitments, it could forfeit a $266m performance bond, which it paid to the government upon its formation.
The company aims to begin rolling out services by early 2021.
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