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HBO doesn’t need boxing to tussle with Netflix

By Tara Lachapelle, Bloomberg Opinion
HBO is walking out of the ring, and it’s the right move.
The pay-TV network, now owned by AT&T Inc., says it will no longer air boxing matches after this year as viewership declines and fight fans become an increasingly tiny portion of its subscriber base. It’s one of the biggest visible strategy changes to come to a Time Warner unit since AT&T completed a $102 billion takeover of the former HBO parent in June.
HBO is “a storytelling platform,” Peter Nelson, executive vice-president of HBO sports, told the New York Times. “Our audience research informs us that boxing is no longer a determinant factor for subscribing to HBO.” Instead, it’s award-winning shows like Game of Thrones, the kind of high-quality programming in which AT&T is looking to increase its investment to stay competitive with Netflix Inc. This year’s Emmy Awards marked a significant milestone for the TV industry as Netflix tied with HBO, a premium channel around since the 1970s, for the most wins.
Of all the inevitable friction bound to arise from a stodgy phone company taking control of an entertainment business, HBO has been the most closely watched aspect of AT&T CEO Randall Stephenson’s Hollywood close-up. I wrote in July that AT&T probably won’t ruin HBO, but it may Netflix-ize it — and that’s not a bad thing. But Stephenson, for his part, hasn’t always detailed that strategy eloquently, hence concerns among AT&T investors and HBO fans. At a Goldman Sachs media investor conference this month, Stephenson used the terribly poor analogy that Netflix is the Walmart of subscription-video services and HBO is like Tiffany. He meant to imply that HBO is the creme-de-la-creme, failing to consider that to many, Tiffany is an old-timey, overpriced mall brand that was slow to catch up with consumer trends. In that sense, Tiffany is the perfect analogy for many media companies, just not the way Stephenson intended.
Even so, AT&T’s vision for HBO doesn’t seem half bad. The goal is to invest more money in the network so that it offers more hit shows per year and keeps viewers from resorting to Netflix. For instance, HBO had a strong run this summer with Succession, the gripping drama about a wicked media mogul and his unscrupulous children. But once the series ended in early August, many viewers may have switched to Netflix or Amazon, which seem to offer endless streams of shows, many quite good. Taking boxing off the air leaves more room for HBO to fill out its lineup with more binge-worthy content.
The waning popularity of boxing programming is a lot like what’s happening in the TV industry more broadly. It reminds me of the Mayweather-McGregor fight a little more than a year ago that put boxing icon Floyd Mayweather in the same ring as Conor McGregor, the trash-talking star of Ultimate Fighting Championship, the home of mixed martial arts. McGregor’s constant action kept the fight interesting, while Mayweather simply waited for McGregor’s stamina to run out — sure, a better technique, but boring for audiences. As expected, McGregor lost, but he delivered the show. (That fight aired, incidentally, not on HBO but its rival Showtime).
Audiences have short attention spans these days, so while HBO may have a strong reputation as a classic entertainment destination, it has no choice but to keep pace with Netflix or else risk being on the ropes. Fewer real-life fights in the ring, more dragon combat. — Bloomberg

Smartphone shipments in Philippines recover in 1st half — IDC report

SMARTPHONE shipments jumped 5.6% to 7.8 million units in the first half, a reversal of the decline seen in the same period in 2017, according to International Data Corp. (IDC) Philippines.
In its Quarterly Mobile Phone Tracker report released on Monday, IDC attributed the first half growth to the increase in shipments of midrange smartphones (worth $200 to $399). It also noted the average selling price (ASP) of a smartphone now stands at $192 from $127 in the first half of 2017.
“The higher ASP indicates that end users are willing to invest in a phone with better specifications and features to suit their latest needs,” IDC Philippines market analyst Polyne Gallevo said in the statement.
Ms. Gallevo said the higher ASP may also reflect an expanding function of smartphones for its users, from being only a “platform for capturing, sharing, saving content and streaming videos” to a device used for a “higher form” of mobile gaming.
The recovery comes after smartphone shipments in 2017 fell 6.6% to 15 million units due to “intense competition” from top brands.
While the ASP of smartphones has grown in the first half of this year, ultra-low-end units (worth less than $100) accounted for the bulk of shipments, followed by low-end units (worth $100 to $199) and midrange units.
For more expensive smartphones, IDC said the availability of different payment options may increase its chances of growing its sales. It noted in-store installment options from financing companies may help shoppers with no credit cards buy high-end smartphones.
“Keeping in mind that Filipinos remain to be price conscious and want to ensure they get the best value of their money, brands now highlight not only the quality of cameras but also features that make smartphone usage experience better such as near bezel-less screens, high-speed processors, quality speakers, AI features, and long battery life to ensure the customers that the brand is the bang for their buck,” Ms. Gallevo added.
The IDC report also identified the top smartphone sellers in the first half, still led by local company Cherry Mobile and international brand Samsung.
IDC said while Cherry Mobile remains on top of the list, it saw a “slight decline” in its performance because of stiffer competition on the price of its products with international brands.
Vivo outpaced OPPO to land in the third place because of its boosted marketing efforts in promoting the V9 and an increase in shipments for its Y71, Y85 and X21 units.
OPPO is now the fourth top seller, followed by Huawei which IDC said showed “significant growth” with improved promotional efforts. — Denise A. Valdez

Gov’t makes partial award of T-bills as rates rise

THE GOVERNMENT partially awarded the Treasury bills (T-bill) it auctioned off yesterday, with demand skewed towards the longer tenor due to elevated inflation bets for the month of September.
The Bureau of the Treasury borrowed just P9.2 billion during its T-bills auction on Monday out of the P15-billion program.
This, even as the offer remained oversubscribed with total tenders reaching P17.1 billion, albeit lower than the P20.7 billion offered by banks and other financial institutions on Sept. 17. Last week, the Treasury opted to reject all bids at its T-bills auction.
Broken down, the government did not award any 91-day T-bills. Total offers reached P3.09 billion, falling short of the P4 billion it wanted to raise.
Had the government accepted all tenders, the papers would have fetched an average rate of 4.679%.
Meanwhile, the BTr borrowed just P3.2 billion out of the P5 billion it wanted to raise via the 182-day debt. The papers fetched an average rate of 5.206%, while total offers stood at P4.14 billion.
On the other hand, the Treasury fully awarded the 364-day T-bills, accepting offers amounting to P6 billion as planned. The average yield rose to 5.648%.
At the secondary market ahead of the auction yesterday, the three- and six-month papers were quoted at 4.5517% and 4.9643%, respectively, while the rate of the one-year T-bills stood at 5.6883%.
At the close of the trading, all tenors finished with higher rates. The 91-day T-bills saw its yield climb to 4.5583%, while the 182-day papers fetched 5.0357%. The 364-day papers were quoted at 5.7182%.
National Treasurer Rosalia V. De Leon said the Treasury opted to reject some bids as rates exceeded its benchmark levels.
“Obviously, the bids would continue to be on the high side,” Ms. De Leon told reporters yesterday. “We’d rather not accept this time given all those [rates which were] not within our own reasonable benchmarks.”
She added that market players priced in expectations of a higher September inflation print. Official data is scheduled to be released on Friday.
A BusinessWorld poll of 13 economists showed inflation likely quickened further in September, yielding a median rate of 6.8%, as typhoon Mangkhut (locally known as Ompong) pushed food prices even higher.
The forecast matched the 6.8% estimate of the Bangko Sentral ng Pilipinas (BSP), but is faster than the 6.4% expected by the Department of Finance (DoF).
“There’s already the announcement by DoF and BSP their prognosis for the September inflation print. And even other analysts, the prognosis is for elevated inflation ratings for September,” Ms. De Leon said.
A bond trader concurred, saying elevated inflation expectations would push the rates for the three-month T-bills higher.
“Actually the 91-day T-bills will still move higher due to the inflation expectations and rates from the BSP to come,” the trader said. “It still up to BTr because they claim they have room to reject since they have a healthy cash position.”
Ms. De Leon yesterday reiterated that the government has the liberty to reject bids given its robust cash position on the back of the collections of the internal revenue and customs bureaus.
“We’ve also done some of our earlier [foreign] funding from both [yuan- and yen-denominated] panda and samurai [bonds],” she said.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion Treasury bonds.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product.
GLOBAL BONDS
Meanwhile, the Treasury said it is working with banks and approvals for the planned dollar-denominated global bonds seen to be offered this quarter.
“We are working with the banks already and looking for opportunities if ever for the offshore markets,” Ms. De Leon explained, adding that the issuance will be “something that [will depend] on market conditions.”
She said Bank of China, Standard Chartered Bank and J.P. Morgan will serve as the lead arrangers for the bond sale. The banks will also serve as deal managers and bookrunners alongside Citi, UBS, Goldman Sachs and Credit Suisse.
“We’re still looking at tenors on the long end,” she added.
In January, the country returned to the global bond market after four years, offering 10-year dollar-denominated global bonds worth $2 billion which carried a coupon of 3%.
The government is also looking at issuing panda and samurai bonds within 12-18 months to maintain its presence in the said markets. — Karl Angelo N. Vidal

Podium West Tower to be completed by Q2 2019

THE Podium West Tower, a joint venture of Keppel Land Ltd. and BDO Unibank Inc., is on track to be completed by the second quarter of 2019.
Keppel Land and BDO last week topped off The Podium West Tower, a Grade A office tower in Mandaluyong City.
“We are privileged to participate in the growing Philippine economy together with our partner BDO in developing this premier and eco-conscious commercial development. When completed in the second quarter of 2019, The Podium West Tower will meet the growing demand for high quality office premises by multinational and local corporations seeking a strategic and prime address in the heart of the city,” Sam Moon Thong, Keppel Land president for regional investments, was quoted as saying in a statement.
The Podium West Tower has a net leasable area of more than 89,000 square meters (sq.m.) of prime office space.
The development received the LEED Gold Mark (Core & Shell) pre-certification from the US Green Building Council. It is also the first building in the country to receive the provisional Green Mark Gold Award by the Building and Construction Authority of Singapore.
Described as an “eco-icon,” The Podium West is “designed to consume a minimum of 14% less energy and 30% less water than standard building designs.” It utilized environmentally-friendly building materials, and water and energy-efficient technologies, such as a 2,000 sq.m. vertical green wall, a rainwater harvesting system, and a green roof.
Phase 1 of the SM-KL project in Ortigas included The Podium mall and the BDO office tower.
Keppel Land, the property arm of Singapore-based Keppel Corporation, is a residential and commercial properties developer. Aside from Singapore and the Philippines, it has projects in China, Vietnam and Indonesia. — Vincent Mariel P. Galang

Spotify gives artists way to circumvent record labels

SPOTIFY Technology SA is giving musicians new tools to release music without a record label.
The company said in a blog post on Sept. 20 that it has invited a few hundred US-based independent artists to upload their songs directly to the world’s most popular paid streaming service. A handful, including Chicago rapper Noname and Haitian DJ Michael Brun, have already tested the feature.
Giving artists the ability to submit music directly to Spotify reduces the need for a record label or third-party distributor, which take a cut of revenue. The move also helps Spotify deliver on its pledge to bypass intermediaries. The streaming service loses money in part because it must pay labels and other distributors a share of the revenue it collects from users.
The uploading feature is a new way to “encourage artists to release music on their own terms,” said Kene Anoliefo, who works on the Spotify team that builds tools for musicians.
The three major record companies either declined to comment or didn’t respond to phone calls about Spotify’s new feature, but the move is just another way in which the streaming service is competing with its biggest partners. Tension between rights holders and Spotify has intensified ahead of a new round of negotiations for music licenses.
The two sides are fighting over the spoils of a newly resurgent music business. US music sales grew 10% in the first half of the year, according to the Recording Industry Association of America, and are on track for a fourth straight year of growth.
Streaming accounted for 75% of the sales — and almost all of the growth. Sales of physical CDs declined by 42% in the first half of the year, while sales of music online fell by more than 25%.
“Music continues its comeback story,” Mitch Glazier, the president of the RIAA, said in the report.
Yet many musicians say they aren’t receiving enough of the spoils. Musicians have long relied on record labels to fund recording sessions, provide creative feedback, plan marketing campaigns and distribute music around the world. In exchange for that support, labels typically own the copyright to the work, giving artists a percentage of sales.
Spotify wants to push aside this system by creating a two-sided marketplace where artists and Spotify both receive a larger share of sales. Musicians who use the “Spotify For Artists” program can see how their music will appear in the app and track their royalties.
The company has said it doesn’t want to own any music and thus isn’t building a label, but it has begun to replicate some music company tasks such as funding large marketing campaigns and building tools for distribution. Spotify has also struck direct deals with artists, and, as mentioned in the blog post, allowed a handful of artists to release music on their own. — Bloomberg

Rising interest rates no problem for Philippine property stock traders

THE most aggressive interest rate tightening in the Philippines in 18 years has yet to shake the faith of local money managers in the nation’s property stocks.
Traders at Security Bank Corp. and ATR Asset Management, Inc. are sticking with their overweight position for the sector, even as the central bank has jacked up policy rates by 150 basis points over four months. SM Prime Holdings, Inc. and Ayala Land, Inc. are among preferred builders on bets the tightening will not lead to a jump in mortgage rates and discourage home buyers.
“Favoring property stocks at a time of rising interest rates seems a paradox,” said Noel Reyes, who helps manage $1 billion as chief investment officer at Security Bank. “But this is an extraordinary situation since foreign inflows are helping drive residential sales and office leasing. The weaker peso has given foreigners and overseas Filipinos the firepower to buy property.”
Chinese buyers, foreigners and families of overseas Filipinos have been a driving force for the market: SM Prime, the biggest home builder by market value and largest mall owner, sourced 80 percent of its first-half reservation sales from the two latter groups. And most of the offshore online gaming licenses issued by the Philippines since President Rodrigo Duterte assumed office two years ago went to investors catering to gamblers from the mainland.
As a result, home-reservation sales jumped 23% to P215 billion ($4 billion) in the first half of the year for the nation’s six biggest developers, AP Securities, Inc. data show. Developers listed on the Philippine exchange delivered 16% growth in second-quarter earnings, one of the best sectors, according to data compiled by Bloomberg based on median income growth results from the companies.
While that’s not prevented the sector’s shares from falling, it’s certainly helped. The Philippine Stock Exchange Property Index has fallen 9% this year, less than the 15% plunge in the nation’s benchmark equity gauge.
The competition among banks is another reason to stay overweight property stocks, according to Julian Tarrobago, who helps manage $1.8 billion as head of equities at ATR Asset Management.
“It’s too early to be afraid that this increase in policy rates will adversely impact affordability when it comes to mortgages,” Mr. Tarrobago said. “It takes time for borrowing costs to reflect the adjustment in full, and banks can’t quickly raise mortgages because the environment is very competitive.”
So far, there are no signs that the central bank’s rate adjustments will throw off the property market or that growth is plateauing, according to Richard Laneda, an analyst at COL Financial Group, Inc. who has a buy rating on the six builders he covers.
“We still expect at least two more quarters of strong take-up sales growth and strong earnings,” Mr. Laneda said. “Many major developers are also building up their leasing assets, so the impact of slower residential will not be as bad as in the previous down cycle.” — Bloomberg

Osmanthus to buy 15% stake in BDO’s One Network Bank

BDO Unibank, Inc. has entered into an agreement with a Singaporean investment firm allowing the latter to acquire a minority share of its rural banking subsidiary.
In a disclosure to the local bourse on Monday, the Sy-led BDO said Singapore-based equity company Osmanthus Investment Holdings Pte. Ltd. (Singapore) is set to acquire a 15% stake in the local lender’s rural banking arm One Network Bank, Inc. (ONB), subject to closing conditions and regulatory approvals.
“The partnership with Osmanthus will further strengthen ONB’s strategic foothold in the microfinance business and contribute to the government’s efforts at improving financial inclusion,” BDO said.
It added that the deal with the equity firm is expected to accelerate the ONB’s thrust to tap the micro, small and medium enterprise (MSME) segment and extend coverage of the unbanked and underserved markets.
Likewise, BDO will retain the controlling stake or 85% ownership in the savings bank.
Osmanthus is a unit of Singaporean private equity firm Archipelago Capital Partners Pte. Ltd. which invests in small- to mid-market firms in Southeast Asia.
Since last year, Osmanthus has been helping ONB develop the framework for its MSME loan business, which led to the establishment of initial test sites before the end of 2017.
“We believe in the vast potential of the MSME market in the Philippines and are committed to help ONB achieve a leading position in serving these customers,” Archipelago Capital Partners Chief Executive Officer Jovasky Pang was quoted as saying in the statement.
“We are also excited by the prospect of having a partner like BDO who shares our vision of financial inclusion.”
BDO completed the acquisition of ONB in July 2015 from the Consunji group.
As of end-March, ONB was the biggest rural bank in the country in asset terms with P27.2 billion, central bank data showed.
The lender operates 120 branches and over 220 automated teller machines, most of which are located in countryside Mindanao.
BDO reported a P13.1-billion net income in the first semester, 1.5% lower than the P13.3 billion it booked a year ago amid lower non-interest gains and bigger operating costs.
Shares in ONB’s parent BDO closed at P120 each on Monday, gaining 20 centavos or 0.20%. — Karl Angelo N. Vidal

UnionBank SRO ‘credit positive’

FRESH CAPITAL raised by the UnionBank of the Philippines bodes well for the lender’s credit rating, Moody’s Investors Service said, noting the additional funding will support brisk lending activity.
The listed lender completed its stock rights offering (SRO) on Friday where it raised P10 billion from the issuance of new shares priced at P62.97 apiece.
In a disclosure, the Aboitiz-led bank said 158.8 million additional common shares have been listed on the Philippine Stock Exchange, which is equivalent to 15% of the bank’s outstanding shares.
“The completed rights issue is credit positive because it will boost UBP’s capital buffers well above Basel III capital rules, while supporting credit growth,” Moody’s said in a report published yesterday.
UnionBank currently holds a “Baa2” rating with a “stable” outlook from the debt watcher, one notch above minimum invest grade to match the Philippine government’s rating.
UnionBank President and Chief Executive Officer Edwin R. Bautista said the fresh capital-raising initiative saw strong demand from retail investors as well as the bank’s existing stockholders, which include sister firms Aboitiz Equity Ventures, Inc. and Insular Life Assurance Co. Ltd. as well as the Social Security System, a state-run pension fund.
UnionBank joined an industry trend for fund-raising initiatives this year ahead of higher capital and liquidity requirements that will kick in January 2019, as the Bangko Sentral ng Pilipinas keeps up with international regulatory standards that promote risk management and sound financial profiles.
According to Moody’s estimates, the latest rights offering will boost the bank’s common equity Tier 1 (CET1) ratio by 220 basis points, bringing the level of high-quality capital at par with other banks and well above the BSP’s standard.
“We expect that the capital raise will be sufficient to support credit growth of about 20% over the next three fiscal years (which end in December 2020), after which the bank’s CET1 ratio will decline to 11%-12% as the growth of risk-weighted assets outpaces the growth of retained earnings,” the debt watcher said.
After three years, UnionBank may need to raise new capital “because its internal capital generation capacity lags credit growth.”
UnionBank’s fresh fund-raising drive would likewise boost its thrust to go more digital, Moody’s said, which is seen to broaden customer reach and increase efficiency. The bank recently adopted blockchain technology to tap rural banks via an interbank information network organized by J.P. Morgan.
Shares of UnionBank closed at P66.60 apiece on Monday, down 40 centavos or 0.60%. — Melissa Luz T. Lopez

Jefferson Airplane band co-founder Marty Balin, 76

LOS ANGELES — Marty Balin, a co-founder of the legendary rock band Jefferson Airplane whose soulful tenor gave the band its distinctive sound, has died at the age of 76, his representative said on Friday.
The guitarist and singer, who co-founded the psychedelic group in San Francisco in 1965, died on Thursday and his wife, Susan Joy Balin, was by his side, spokesman Ryan Romenesko said in a statement. The cause of death was not announced.
Jefferson Starship, the splinter band that Balin also played in for a number of years, paid tribute to their former bandmate on its official Facebook site.
“With heavy hearts, we learn today of the passing of Marty Balin. He was a true talent and inspiration to many. We send his family and friends our deepest condolences,” the group said.
Balin teamed up with guitar player Paul Kantner in San Francisco and the band launched its debut album, Jefferson Airplane Takes Off, in 1966. Kantner died in 2016.
The band, best known for their hits sung by vocalist Grace Slick, including “Somebody to Love” and “White Rabbit,” played at the Woodstock music festival in 1969 and was inducted into the Rock and Roll Hall of Fame in 1996.
Balin also wrote songs like “Volunteers” and “Today” for the band, as well as contributing to hits for Jefferson Starship, including “Runaway” and “Miracles.”
The band went through various line-ups, and Balin left Jefferson Starship in 2008 to focus on a solo career.
Balin had heart surgery in 2016 and in August this year he filed a civil lawsuit for malpractice against a New York City hospital, saying he left the hospital with a damaged tongue and vocal chords.
“Marty and I shared the deepest of love — he often called it Nirvana — and it was. But really, we were all touched by his love. His presence will be within my entire being forever,” Susan Joy Balin said in a statement. — Reuters

Cost of a home in Toronto, Vancouver ‘off the charts’

THE COST of owning a home in Canada is at the highest level in 28 years and likely to get only more onerous as interest rates continue to rise, according to a report from Royal Bank of Canada.
Home ownership costs, including a mortgage, property taxes and utilities, took up 54% of a typical household’s pre-tax income in the second quarter, the Toronto-based bank said in a report on Friday. That’s up from 43% three years ago.
“From overheating to correction to the onset of recovery, we’ve seen pretty much everything in the past three years in Canada’s housing market,” economists at the Toronto-based bank said in the report. “Yet an eye-watering loss of affordability has been a constant.”
Unaffordability is “off the charts” in Vancouver, Toronto and Victoria, with RBC’s index at 88%, 76% and 65% respectively — the highest in records going back to the mid-1980s. The measure uses an aggregate of all housing categories, including single-family detached homes and condos.
While rising prices had been the culprit behind the loss of affordability between 2015 and 2017, mortgage-rate increases accounted for the entire rise in carrying costs over the past year, the bank said. The country’s central bank has risen interest rates four times since July, 2017.
“We expect the Bank of Canada to proceed with further rate hikes that will raise its overnight rate from 1.50 percent currently to 2.25 percent in the first half of 2019,” the report said. “This will keep mortgage rates under upward pressure and boost ownership costs even more across Canada in the period ahead.” — Bloomberg

PT&T appeals ‘erroneous’ fee imposed by NTC

By Denise A. Valdez, Reporter
PHILIPPINE Telegraph and Telephone Corporation (PT&T) has filed a petition with the Court of Appeals (CA), questioning the “erroneous” and “inaccurate” amount of supervision and regulation fee (SRF) imposed on the company by the National Telecommunications Commission (NTC).
“While PTT is required to pay an annual SRF, the amount PT&T is being required to pay under the 28 September 2018 Decision of the NTC is inaccurate for the same was computed by the NTC based on its erroneous assumption of PT&T’s paid-up capital,” the company said in a disclosure to the stock exchange on Monday.
In a Sept. 28 decision, the NTC asked the company to pay a total SRF of P444 million — broken down as P330 million for the period from 2002 to 2015; and P114 million from 2016 to 2017.
The NTC said SRF for the 2002 to 2015 period was based on PT&T’s paid-in capital of P8.712 billion, as computed in a resolution it released on March 31, 2017.
Although it acknowledged that PT&T’s annual reports showed the additional paid-in capital is P2.054 billion, the NTC said it cannot overturn its own decision because the company failed to file an appeal within 15 days from its issuance.
“For (PT&T)’s failure to contest the computation within the time allowed, the Commission deems the basis and resulting computation of (PT&T)’s SRF from 2002 as final and binding,” it said.
Last Feb. 28, PT&T filed an appeal with the NTC to recompute the SRF, almost a year after the resolution was released.
As for the SRF from 2016 to 2017, the NTC said this was based on PT&T’s paid-in capital of P10.766 billion, as indicated in its March 31, 2017 decision.
In a mobile message to BusinessWorld, NTC Deputy Commissioner Edgardo V. Cabarios said: “We stand by our assessment but we will respect the resolution of the courts on the matter.”
PT&T is one of the companies vying for the third telco player slot being auctioned off by the government.
The selection terms for the third player required that participants have no outstanding liability with the NTC as of Oct. 1.
Asked how the latest NTC decision will affect the company’s intentions of joining the bidding, PT&T chief executive officer James G. Velasquez said it should be of no concern, as the restriction is limited to uncontested liabilities. He noted PT&T is fully paid on this aspect.
“As the fee amount in this particular instance is contested, it does not prevent us from bidding as planned,” he told BusinessWorld.
In a statement, Mr. Velasquez said the company has already paid the NTC its uncontested P10.27 million SRF for 2018, and the P20.57 million for its spectrum users fee from 2003 to 2018.
The government plans to name the third telco player by December. The deadline of submission of bids is on Nov. 5.

Microinsurance coverage up

THE Insurance Commission (IC) said the number of Filipinos covered by microinsurance grew further in the first half of the year driven by mutual benefit associations (MBA).
In a statement sent to reporters on Monday, the IC said 36.55 million individuals were covered by microinsurance products as of end-June, up 28.59% from just 28.42 million reported in the same period last year.
“As of end-June this year, the number of individuals covered by some form of microinsurance protection increased to 36.55 million with the mutual benefit associations sector as the consistent frontrunner in terms of number of lives covered and premium production,” Insurance Commissioner Dennis B. Funa was quoted as saying in the statement.
Broken down, the MBA sector covered 21.45 million members and dependents as of end-June, cornering a 58.59% in the total number of individuals covered by microinsurance.
This was followed by the life insurance sector, which covered 11.45 million lives in the first semester, up 37.58% from 8.32 million a year ago.
The non-life insurance sector insured 3.65 million as of end-June, up 29.31% from only 2.82 million lives year-on-year.
In terms of premium production and contributions, an increase of 12.47% was recorded as of end of second quarter this year to P3.71 billion, up from P3.3 billion in the same period last year.
MBAs accounted for 59.3% of the total premium production amounting to P2.2 billion. This was followed by the life insurers with 29.51% or P1.1 billion, and the non-life insurance sector with 11.19% or P415.3 million.
At present, a total of 43 companies composed of 22 MBAs, 11 life insurance firms and nine non-life insurers actively engaged in providing microinsurance products
“The consistent growth in the number of lives insured and premium production demonstrates the effectiveness of the microinsurance scheme in providing insurance solutions to everybody especially to the low-income households,” Mr. Funa added.
In separate interviews, Philippine American Life and General Insurance Co. and Allianz PNB Life Insurance, Inc. have said they are considering to venture into the microinsurance business.
“We are pleased that more insurance companies are expressing their interest in developing new microinsurance products to help narrow the country’s protection gap,” added Mr. Funa. — Karl Angelo N. Vidal

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