THE GOVERNMENT will wait until the end of March before writing to PLDT, Inc. regarding plans by the government to assign the Connectivity Unlimited Resource Enterprise (CURE) frequencies without compensation to PLDT.
Department of Information and Communications Technology (DICT) Acting Secretary Eliseo M. Rio, Jr. said the department will respect the internal procedures of PLDT and will await the company’s formal communication to them.
“We will not rush them. Probably by the end of March,” Mr. Rio said in a phone interview, asked about the government’s notification time line.
Mr. Rio said the government is focused on releasing the final joint memorandum circular on the selection of the telecommunications industry’s “third player” on March 21. It wants to reassure the potential investor that CURE frequencies will be available.
“(PLDT has its) internal procedure. We trust they will honor their word.”
PLDT Chairman President and CEO Manuel V. Pangilinan told reporters yesterday: “There’s a process internally, dictated by our governance. I cannot just send a letter because I just want to send a letter…”
Mr. Pangilinan did not specify a time line.
PLDT this month agreed to the government’s plan to assign frequencies held by CURE to the telecom industry’s “third player” for no compensation.
President Rodrigo R. Duterte was “displeased” with the prospect of having to pay for the CURE frequencies, which were awarded to telcos for free after a “beauty contest” to allocate frequencies.
The government will award the remaining available frequencies, to the third player, including the third-generation (3G) CURE frequencies allowing the new entrant to compete with incumbents PLDT and Globe Telecom, Inc.
The frequency held by PLDT unit CURE was to be divested as a condition of National Telecommunications Commission (NTC) approval of the PLDT merger with Digitel Telecommunications Philippines, Inc. in 2011. NTC was supposed to auction the asset but failed to do so.
The 3G frequency bands were awarded via “beauty contest” by the NTC in 2005. PLDT acquired the 15 MHz band, Globe Telecom, Inc. 10 MHz, Sun Cellular (Digitel) 10 MHz, and CURE, 10 MHz. In 2007, PLDT bought CURE and operated the telco using the brand name RED Mobile. In 2011, PLDT filed for approval of its acquisition of Digitel.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo
