September 8, 2021 | 8:17am
The audit was to confirm whether Dito Telecommunity [DITO 8.79 1.97%] had lived up to its franchise conditions for population coverage and minimum network speeds in its second year.
The auditor said that DITO’s network had covered 52.75% of the country’s population, and achieved minimum average speeds of 89 Mbps for 4G and 853 Mbps for 5G. That’s good enough to pass. For reference, DITO was required to have covered 51.01% of the population, and achieve minimum average speeds of 55 Mbps.
At least DITO was able to get that passing grade this time without a huge 6-month extension. Remember back when DITO passed its first audit in late February, and the market responded by selling the stock mercilessly for two weeks until the stock had lost over 50% of its value from that P18.18/share high just before the 1st audit announcement?
I certainly remember. The market’s reaction this time around was a lot more positive, but that isn’t saying very much considering the stock price is still less than half of that pre-1st audit high. Once the Udenna-DITO swap finally completes and the Dito Telecommunity assets are finally folded into DITO, it will be very eye-opening to see DITO’s financial statements incorporate something other than loans to Dennis Uy and his companies.
On the audit results, at least the minimum average network speeds appear to be healthy; there was a lot of speculation that the speeds registered in the 1st audit (85 Mbps for 4G and 507 Mbps for 5G) might degrade significantly once subjected to the daily load of subscribers. That doesn’t appear to have happened. Kudos to the network team.
DITOmaniacs just need to hope that the network infra remains solid as the load increases, as it must, for DITO to onboard the 30 million subscribers it hopes to add over the next four years.
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