One could say the odds were stacked against it, going up against established incumbents while rolling out an extensive standalone 5G network, now with over 15 million subscribers.
We’ve tried the service ourselves, and it was very fast and stable, at least around Metro Manila.
But running a telco and sustaining momentum can be an endless expense, and DITO is years away from profitability.
Its strategic partner, China Telecom, remains committed, but its ability to inject more capital is constrained by an ownership cap on foreign state-owned entities.
The entry of the Summit Group, which was expected to dislodge Davao-based tycoon Dennis A. Uy as the largest shareholder of listed holding firm DITO CME, has yet to materialize.
The problem is that the deal appears to have stalled amid the ongoing flood control probe.
It’s very telling that DITO CME’s share price has fallen below Summit’s P1 entry point—a signal that the market is starting to doubt that the deal will push through.
Despite delays by Summit, we’re hearing talk of other foreign investors keen on making a play for the country’s third major telco.
These talks often lead to a due diligence process, after which an offer could be made.
We wouldn’t be surprised if such a detailed review has already begun, especially if this is the kind of investor that moves when others hesitate.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
