NEDA chief Chua favors more telco players with need to shift to digital economy

May 7, 2020

Acting National Economic and Development Authority Director General Karl Kendrick Chua underscored on Thursday the need to shift to digital economy amid the coronavirus disease crisis.

With this, Chua said he favors possible move for more players in the telecommunications industry.

"This COVID-19 crisis has impressed upon us the need to transition to a digital economy," he said in a virtual press conference.

However, he acknowledged that the country's digital infrastructure needs to be improved.

"The digital divide needs to be addressed. A number of structural reforms are also needed and be put in place," he said.

The government has placed some parts of the country, such as Metro Manila, Central Luzon, Calabarzon and other highly urbanized cities under the enhanced community quarantine while the rest of the Philippines, under the general community quarantine. In both ECQ and GCQ, the movements of the people have been restricted. 

In areas under ECQ, most businesses have remained closed while those under GCQ, other businesses have been allowed to operate.

But the government is encouraging work from home, through the aid of the Internet, in order to prevent further spread of COVID-19.

Asked if he saw the need to allow fourth telco in the country in order to transition to digital economy, Chua said, "I am open for having the most number of sustainable suppliers so that we can see the quality and the price that the consumers deserve."

The Philippines used to be monopolized by two giant telcos - the Smart Communications/PLDT Inc. and Globe Telecom. In late 2018, the Duterte administration allowed Mislatel Consortium, now Dito Telecommunity, led by Davao-based businessman Dennis A. Uy, to operate as the third major telco in the country. 

But despite having three players already, observers have said that the telecommunications services have not improved much. Celerina Monte/DMS