Meridian’s P638-M project gets BOI perks

The Board of Investments (BOI) has granted incentives to Meridian Telekoms Inc. for its P638-million inter-exchange data services under the government’s Omnibus Investments Code.

Documents from the BOI indicate that Meridian had applied for a pioneer status as an inter-exchange carrier for data services, pending the endorsement of the National Telecommunications Commission (NTC).

The project is part of Meridian’s P2-billion wireless broadband network intended to cater to the Internet and data needs of small and medium enterprises as well as high-end corporate users.

According to the BOI, the approval of Meridian’s registration as a pioneer, would depend on whether it can secure NTC’s certification that no entity is in full commercial operation for this type of activity upon filing of its application for registration.

The approval of its registration under the OIC or Executive Order 226 qualifies Meridian for a six-year income tax holiday beginning February 2001 or from the actual start of commercial operation.

When its income tax holiday expires, the BOI said the company may also avail of an additional deduction from its taxable income. This would be equivalent to 50 percent of the wages corresponding to the increment in the number of skilled and unskilled workers from the year of availment compared to the previous year.

However, Meridian has to meet the prescribed radio of capital equipment to the number of workers of $10,000 to one worker.

Meridian is a broadband access provider owned by Victor "Vic-Vic" Villavicencio, owner of Triple V Group; Micro-D International and Marcel Crespo, son of notorious businessman Mark Jimenez and executive vice president of The Manila Times.

Meridian will be offering wireless broadband access for small and medium-scale enterprises as well as high-end corporate users. This third generation mobile technology would allow high-speed, high-capacity data transmission through cellular phones.

Meridian designs its own wireless network, installing receives and transmitters that would enable even small shops far from the business districts to access broadband services.

Broadband access is a transmission medium capable of supporting data, video and voice transmissions.

Infotech-related projects like Meridian’s are qualified for full incentives under the 2000 Investment Priority Plan (IPP), giving the industry a pioneer status that qualifies projects to various incentives including an automatic six-year income tax holiday.

The IPP is a list of priority projects approved annually by the government, intended to develop domestic industries by giving them incentives. Special consideration is given to pioneer projects that need not be export-oriented but are innovative enough to have a multiplier effect on various related industries. It is already included in the IPP but only as a portion of the electronics industry and as an export-oriented activity. The new listing creates a separate heading for the industry, qualifying all IT-related activities for incentives including those that are not export-oriented.