Philippines Removes Capital Requirements for Investment in the Telecom Sector

Updated on Friday 27th April 2018

Telecommunications is one of the most important pillars of the Philippines economy and until recently, the government had a very strict set of regulations for those interested on this market. Now, the authorities have decided to repeal the capital requirement of 1 billion pesos for those interested in entering the telecom market. Below, our Philippines company formation agents explain the new rules which are under debate.

Foreign companies allowed to enter the telecom market in the Philippines

There are two large companies offering telecommunications solutions in the Philippines at the moment, however, the government has decided that there is room for other players who want to enter this industry. This the reason why it had the Competition Commission in charge with creating new regulations related to granting permission for a third player who want to offer their services in the Philippines. This time, foreign companies seeking to enter the Philippines market are also welcome.

The most important change, which was also confirmed, is the removal of the capital requisite of 1 billion pesos interested in servicing the Filipino population.
The next aspect to be analyzed by the Commission will be the simplification of the review process when it comes to potential companies interested in obtaining the telecom license. The solution found so far is the creation of a joint venture.

Our company registration advisors in the Philippines can help foreign investors who want to open companies in the telecommunications industry.

What are the current regulations to enter the telecom market?

Under the current legislation, companies interested in becoming telecommunications operators must first undergo a comprehensive verification by the Competition Commission. For joint ventures, the process is simpler, as the Commission must be notified only if the value of company bought is higher than 5 billion pesos.

At the moment Ministry for Information and Communications Technology is preparing the new rules for companies interested in operating in the Philippines.

Foreign enterprisers who want to open companies in the Philippines and need assistance are welcome to contact our local representatives for more information on the registration procedures of a business.