THE Department of Information and Communications Technology (DICT) does not believe that the re-inclusion of the P10-billion paid-in capital requirement will deter bidders hoping to become the third entrant in the telecommunications industry.
DICT Acting Secretary Eliseo M. Rio, Jr. said that interested companies are more concerned with the timetable of the selection process.
“I don’t think it’s going to be a hindrance. In fact, the companies are asking more about the timetable, when we are going to proceed,” Mr. Rio said in a phone interview.
The DICT last week pushed back its deadline for awarding the contract to the end of the year. It previously had a self-imposed deadline of naming the third player before the State of the Nation Address (SONA) of President Rodrigo R. Duterte in July. Mr. Duterte initially wanted a third player by the first quarter of the year.
Mr. Rio said that the new target for the selection process is August.
The DICT earlier this month amended provisions of its memorandum order on the policy guidelines of the entry of a new major player. The company or consortium must have paid-in capital of at least P10 billion; experience in providing, delivering, and operating of telecommunications services for the last five years; a congressional franchise not related to incumbents PLDT, Inc. or Globe Telecom, Inc.; and no uncontested liabilities with the National Telecommunications Commission (NTC) as of Jan. 31, 2018.
The government is currently preparing the terms of reference (TOR) for the selection criteria which are set to be released by mid-May. The terms are being reviewed by the oversight committee created by the executive department under Administrative Order 11.
The first draft terms of reference, published in February, included the financial requirement of net worth of at least P10 billion. The focus of the government was to choose the bidder submitting the highest financial commitment for five years, but after a public consultation and concerns from interested companies, the DICT said it would be shifting to requiring wide coverage and high speed.
However, Mr. Rio said that financial capability has become a significant part of the criteria. Finance Secretary Carlos G. Dominguez III said earlier this month said that total investments needed by the new provider are estimated at least P200 billion to “effectively” compete with PLDT and Globe.
“If the new player can’t compete with PLDT or Globe, then it would be no use,” Mr. Rio said.
Interested local firms include Now Corp., Philippine Telegraph and Telephone Corp. (PT&T), and Converge ICT Solutions Inc.
Domestic firms are looking at forming consortia with foreign firms to meet the technical and financial criteria.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

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