PLDT Inc. said it is set to submit a formal notice to the National Telecommunications Commission to waive its rights for the recovery of its investment in the third-generation frequency that the company returned to the government in 2011.
“We need to sign an agreement. There’s been a letter circulating internally. We have to send them a letter, which we will. We have taken a public position that we will waive all rights and benefits to the frequencies, which have been turned over to NTC,” PLDT and Smart chairman and chief executive Manuel Pangilinan said.
The NTC earlier estimated that the cost recovery of the Connectivity Unlimited Resource Enterprise 3G frequency would amount to P3 billion, including PLDT’s investment in Cure and payment of regulatory fees.
Smart bought Cure for P419.54 million in 2008 from the group of former trade minister Roberto Ongpin.
The divestment of Cure’s 10 megahertz 3G frequency was one of the conditions set by the NTC in approving the acquisition of Digital Telecommunications Philippines Inc.
Cure’s 3G frequency will be assigned to the new third telco player on top of the other frequencies held by NTC. The available frequency bands for the new player are 700 MHz, 800 Mhz, 2100 Mhz, 2500 Mhz and 3400-3500 Mhz.
The Department of Information and Communications Technology said it was expecting to announce the new major telco player by May 18. The new major telco player was expected to roll out its services by end of the year.
Under the draft rules issued by DICT, the prospective bidders should have a net worth of at least P10 billion, with a congressional franchise to operate telecom services.
It said in case of a consortium, Filipinos should control at least 60 percent and at least one of the members should be a holder of a congressional franchise.
Prospective bidders should not be a related party to any telecom group with a mobile and broadband wireless market share of at least 40 percent, it said.
The potential candidates for the third player should invest at least P250 billion to P300 billion over five years to compete with the existing players.