MANILA, Philippines - The state-run National Telecommunications Commission (NTC) is seeking the help of the Government Procurement Policy Board on how to deal with the bidding of the third generation (3G) license of Connectivity Unlimited Resources Enterprise (Cure) surrendered by the Philippine Long Distance Telephone Co. (PLDT).
Dennis Babaran, head of the legal affairs division of NTC, said the agency needs guidance from the GPPB as the 3G license to be auctioned is not owned by the government but by a private entity.
“As of now, the matter was forwarded to the GPPB last Holy Week. NTC is asking for criteria on how to deal with the bidding because this is an extraordinary situation because this is not a government property so we need guidance,†Babaran stressed.
The PLDT Group surrendered the 3G frequency of Cure being used by its wireless arm Smart Communications Inc. to NTC in the middle of last year.
It would be recalled that Smart acquired Cure from former trade minister Roberto Ongpin in 2008 for a total consideration of P419.54 million. It invested P1 billion in Cure after acquiring it from the Ongpin group.
The divestment of Cure’s 10 megahertz 3G frequency was one of the conditions set by the NTC in approving the sale of the 51.55-percent stake in Digitel of businessman John L. Gokongwei Jr. to the PLDT group for P69.2 billion in 2011.
The PLDT Group wants to recover P2.215 billion from the sale of Cure’s 3G frequency.
“This is still assigned to CURE, the PLDT Group already relinguished it but it’s still assigned to them right now,†he added.
The PLDT Group has already tapped accounting giant SGV & Co. as its representative in the three-man team that would determine the value of the 3G license that it surrendered NTC last July.
The three-man team of independent auditors that would determine the cost recovery amount (CRA) of the 3G license of Cure.
The PLDT Group has officially agreed to apply Rule 32 of the Rules of Court in connection with the inclusion of associated funding cost as one of the components of the CRA to abbreviate the proceedings.