CURE to be sold via public bidding

MANILA, Philippines - With the National Telecommunication Commission’s approval of the sale to the Philippine Long Distance Telephone Co. (PLDT) of a majority stake in Digital Telecommunications Phils. Inc. (Digitel) now final, the NTC said it can now start the process of implementing the conditions set forth in its ruling, including the sale by PLDT of Connectivity Unlimited Resources Enterprise (CURE).

NTC commissioner Gamaliel Cordoba told The STAR that with no party appealing their decision not later than 60 days from the time the last party was notified in November, the decision has become final and executory last month.

“We will start by asking the parties, in particular PLDT, as to the status of their compliance with the conditions set out in our decision,” he said.

The NTC last October gave its “conditional” approval to the acquisition by PLDT of an initial 51.55 percent stake in Digitel from the Gokongwei Group.

Last Jan. 20, PLDT announced that it now owns 98 percent of the enlarged capital base of Digitel following the successful conduct of a tender offer among the minority shareholders of the latter.

The NTC approval, which was handed down exactly six months after PLDT and Digitel filed their joint application, was subject to certain conditions, including the sale of PLDT subsidiary CURE in a public bidding.

In order to ensure that public interest will not be prejudiced by the sale of Digitel to PLDT, the commission required PLDT to continue with Digitel’s unlimited call and text messaging services to the public. Digitel is the 100 percent owner of Digitel Mobile Philippines Inc., which owns the brand Cellular Sun.

Another conditionality imposed is that PLDT will divest itself of subsidiary CURE, with the latter’s franchise, telecommunications frequencies, and related permits to be later sold via an NTC-supervised competitive public bidding among duly enfranchised and qualified public telecommunications entities (PTEs).

The divestment of CURE, which owns much-sought-after 10 Mhz of 3G frequency in the 2100 band, will follow a plan which is detailed in the NTC decision and was the subject of earlier negotiations between the regulator and the PLDT.

Under the plan, CURE will sell its Red Mobile business to PLDT wholly-owned mobile subsidiary Smart Communications consisting of its subscriber base, brand and fixed assets. Smart will then sell all of its rights and interests in CURE whose remaining assets will consist of its congressional franchise, the affected frequency, and related permits.

PLDT will have nine months to effect the orderly migration of CURE’s customers as well as an orderly transfer or CURE’s assets to Smart with the least disruption and degradation of service to CURE’s existing customers. The transition period will be reckoned from the date of promulgation of the decision.