Upstart telco CURE hikes capital after getting 3G license

Connectivity Unlimited Resources Inc. (CURE), an upstart telecommunications company controlled by former Trade Minister Roberto Ongpin, has raised its paid-in capital to P451.44 million after securing a third-generation or 3G license from the National Telecommunications Commission (NTC).

"With this increase in paid-up capital, CURE has now fulfilled all of the requirements in accordance with its award of the 3G frequency," CURE president Eric Recto said in a letter to the NTC.

CURE is one of four companies earlier granted a license to operate third generation mobile services in the country, along with Smart Communications, Globe Telecoms and Digital Telecommunications Philippines Inc..

Despite being a new player, CURE is aiming to capture approximately 30 to 35 percent of the early adapters from 2G to 3G in the first three years of service.

The company is targeting around 750,000 customers in the first year of operations and about three million subscribers in the fifth year.

3G will make possible high speed data, voice and video services. It promises greater bandwidth and higher transfer rates ranging from 384 kbps to 2 mbps, a quantum leap from GSM technology’s maximum speed of 9.6 kbps. This speed allows easier Internet browsing and the downloading of huge files.

CURE has earmarked P13.7 billion in the first four years of its operations.

It is reportedly in talks with Hongkong-based Hutchinson Whampoa Ltd. for a possible partnership to support its rollout of 3G in the next five years.

The company expects to post a net income of more than P2 billion in the fourth year of operations after net losses in the first three years. For its first year, it is eyeing revenues of P8.2 billion.