Philippine Communications Satellite Corporation

Philippine Communications Satellite Corporation (PHILCOMSAT) is a telecommunications company based in Makati, Metro Manila, Philippines. Its main teleport is in the province of Rizal.[1]

Philippine Communications Satellite Corporation
IndustryTelecommunications
HeadquartersMakati, Metro Manila, Philippines
Key people
Finance Usec Bayani Agabin
  (Director/Gov't Representative)
Santiago Ranada, Jr.
  (Chairman)
Lin Bildner
  (President/CEO)
Katrina Ponce Enrile
  (Director/CFO)
ServicesSatellite service provider
ParentPhilippine Overseas Telecommunications Corporation
SubsidiariesPhilcomsat Holdings Corp.
Websitewww.philcomsat.com.ph

History

PHILCOMSAT was formed as a joint venture between the government of the Philippines under the administration of then President Ferdinand Marcos and the Philippine Overseas Telecommunications Corporation (POTC), a firm established by businessman Potenciano Ilusorio and then Defense secretary Juan Ponce Enrile.[2]

On May 2, 1968, the company, as the Philippines’ signatory to Intelsat and Inmarsat, formally inaugurated a permanent earth station in Baras, Rizal.[3] This linked the country to a worldwide communications satellite network. On June 21, 1969, the company was given a franchise through Republic Act No. 5514 to operate grounds stations and other facilities for international satellite communications.[4] It was also granted tax exemptions under the same law.  Under Republic Act No. 11226 signed into law on February 22, 2019, Philcomsat's telecommunications mega-franchise was extended until 2044.[5]

Philcomsat became the major supplier of international circuits for telecommunications firms in the country such as the Philippine Long Distance Telephone Company (PLDT) and other carriers. In 1982, the government sold its stake to the POTC, making the latter the sole owner of Philcomsat. Since 2000, the Republic of the Philippines has owned 35% of POTC, while a group of private shareholders, notably the Ponce-Enrile and Ilusorio families, own the balance.[6]

After the People Power Revolution of 1986, the Presidential Commission on Good Government (PCGG) of then President Corazon Aquino sequestered Philcomsat and POTC. This allowed the Aquino administration and subsequent governments to install their nominees in the board of directors of Philcomsat and POTC, none of whom were experts in the field of telecommunication.  This led to the decline in the business of both companies.  After an extensive investigation by the Philippine Senate in 2006-2007, it was found that the PCGG nominees plundered and decimated the two companies.[7] In 2016, the Supreme Court ruled that the two companies had been wrongly sequestered since 1987.[8]

Currently managed by the scions of POTC’s founders, Lin I. Bildner and Katrina Ponce-Enrile,[9] Philcomsat was able to recover some of the funds dissipated by the former boards of directors and management and to rebuild its telecommunications business.  Philcomsat currently provides satellite communication services for the Philippine government and, in partnership with Australian satellite services supplier Speedcast International, is a major installer for and provider of President Rodrigo Duterte's "Free Wi-Fi For All” project administered jointly by the United Nations Development Programme and the Department of Information and Communication Technology (DICT).[10]

References
  1. "Contact Us". Philippine Communications Satellite Corp. Retrieved 10 March 2020.
  2. Supreme Court Decision G.R. No. 174462, February 10, 2016. Philippine Supreme Court E-Library. 2016. Retrieved 10 March 2020.CS1 maint: date and year (link)
  3. "May 3, 1968 Marcos opens satellite station". Manila Times. 3 May 2011. Retrieved 14 December 2017.
  4. "REPUBLIC ACT NO. 5514, June 21, 1969". Philippine Supreme Court E-Library. 21 June 1969. Retrieved 23 July 2019.
  5. Nicolas Cigaral, Ian (15 March 2019). "Duterte signs law extending PHILCOMSAT franchise". Philippine Star. Retrieved 10 March 2020.
  6. "G.R. No. 174462 - PHILIPPINE OVERSEAS TELECOMMUNICATIONS CORPORATION (POTC), PHILIPPINE COMMUNICATIONS SATELLITE CORPORATION (PHILCOMSAT), PETITIONERS, VS. SANDIGANBAYAN (3rd DIVISION), REPUBLIC OF THE PHILIPPINES REPRESENTED BY PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG), RESPONDENTS.D E C I S I O N - Supreme Court E-Library". elibrary.judiciary.gov.ph. Retrieved 2020-03-10.
  7. "BIR sues 3 former Philcomsat executives". Philippine Daily Inquirer. March 25, 2011. Retrieved March 10, 2020.
  8. "Supreme Court Decision G.R. No. 174462, February 10, 2016". Philippine Supreme Court E-Library.
  9. "Philcomsat Management". Philcomsat Website. March 10, 2020.
  10. "DICT & UNDP Award Contract to Connect 3,000 Remote Locations with Free Internet". United Nations Development Program (UNDP). October 10, 2019.
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