THE International Finance Corp. (IFC) said it may back with investments a third player in the telecommunications industry, citing the new entrant’s potential for raising inclusivity by increasing broadband access.

“If you get an appropriate partner, we can add value to them. We have investments in telecom in almost every country in the world,” Vivek Pathak, IFC regional director for East Asia and the Pacific, said in an interview earlier in the month.

Asked whether the agency is open to working with a Chinese company — the government’s preferred path for introducing a third player, Mr. Pathak said: “The way we view it is, as long as it creates more competition, and a level playing field, I think it’s very important.”

IFC is a part of the World Bank Group.

PLDT, Inc. and Globe Telecom, Inc. are the incumbents in the telecommunications industry, and President Rodrigo R. Duterte is seeking to introduce more competition.

Malacañang said this month that the Chinese government has chosen China Telecom Corp. Ltd., to be its representative when the telecom industry is opened up.

Philippine Telegraph and Telephone Corp. (PT&T) has indicated that it is in talks with China Telecom to be its partner — as the law only allows 40% foreign ownership in telecoms.

Mr. Pathak said a third player could help develop disruptive technology for small businesses.

“I think that’s a very critical sector. The number of jobs, the amount of business to be conducted with disruptive technology and more financial inclusion, that is critical. But also that you need good broadband availability,” he said.

“Transparency is critical. We think a third player will enhance connectivity,” he added.

The Philippines has one of the slowest and most expensive Internet services in Asia Pacific, paying $40.96 for 13.41 Mbps according to an Akamai Technologies report.

“There’s nothing but competition that would help drive increase usage, reduce costs. So we’d love to see more competition in that,” said Mr. Pathak.

However, the third entrant has only limited spectrum to work with, and may need to base its business model on cell site construction or providing Internet to underserved areas, the Department of Information and Communications Technology (DICT) has noted.

The Philippine Competition Commission estimates that about 12.8% of spectrum will be available for a new entrant.

IFC’S overall committed portfolio in the Philippines was about $550.53 million as of July. — Elijah Joseph C. Tubayan

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