‘Tonyboy’ Cojuangco to go into cellphone business

Rumors that businessman Antonio "Tonyboy" Cojuangco plans to venture into the highly competitive world of cellular mobile telecommunications were finally confirmed after a company identified with him applied with the National Telecommunications Commission (NTC) for a license and frequency to offer third-generation (3G) mobile technology, a business that will entail billions of pesos in investments, The STAR has learned.

According to NTC sources, the company AZ holds office in DPC, the same building where Cojuangco’s other businesses such as Philippine Multi-Media System Inc. (PMSI) which operates satellite TV service provider Dream Broadcasting hold office. Industry sources, meanwhile, say that everyone in the telecommunications business knows that Cojuangco owns AZ.

Earlier, Cesar Reyes, PMSI chairman and chief executive officer, revealed that their group is interested to go into 3G but would not say which company will be used as a vehicle.

Reyes dispelled rumors that Cojuangco owns aspiring Connectivity Unlimited Resources Enterprises (CURE) which is also applying for a 3G license. Cojuangco, former PLDT chairman, whose family used to own the country’s largest telecommunications company, was linked to CURE because of the presence of former PLDT officials in the said company. "No, we never had anything to do with CURE," Reyes said.

The end of the 30-day period for applying for a 3G license with the NTC resulted in three automatic applicants and four new ones. The automatic applicants are the incumbent cellular mobile telephone service (CMTS) franchise holders Smart Communications, Globe Telecom, and Digitel Mobile of the Gokongwei group.

The new applicants include AZ, CURE, Multi-Media Telephone Inc, and Next Mobile.

CURE is identified with former Trade Minister Roberto Ongpin whose company ISM Communications wants to go into mobile telephony.

Under NTC rules governing the issuance of 3G licenses and frequencies, there will be five licenses that will be issued. If more than five applicants are able to prove their technical, financial, and legal capabilities, then the NTC will resort to a bidding.

From the expiration of the 30-day period for application, the seven applicants have 60 days to prove that they have the capability to engage in 3G, the latest mobile phone service technology after 2G or GSM, 2.5G or GPRS, and 2.75G or EDGE. Smart, Globe, and Digitel’s Sun Cellular are currently using GSM and GPRS, and are EDGE-capable.

Both Smart and Globe have began tests on 3G, which will allow mobile phone service companies to offer richer applications and faster download speeds than that allowed by GPRS.

After the 60-day period for submission of the necessary documents, the NTC will have another 60-days to evaluate the applications and then notify the parties chosen.

As for the new entrants, the commission requires a minimum paid-up capital of P100 million which they will have to increase to P400 million.

Globe Telecom has just successfully completed its first video calls over its 3G trial network.

Rival Smart Communications maintains that the cellular market is not yet ready for 3G of cellular networks until 3G-enabled handsets are priced below $150 or not more than P8,400, but trials are being conducted nevertheless.