PLDT agrees to surrender frequency to gov’t for 3rd telco player

MANILA, Philippines — PLDT Inc. has reportedly agreed to surrender to government “at no cost” one of its radio frequencies that will soon be available to the potential third telecom player.

Presidential Spokesperson Harry Roque on Tuesday said President Rodrigo Duterte was “displeased” that the government would have to find frequencies to be allotted to the new telecom provider.

PLDT Chairman, President and Chief Executive Officer Manuel Pangilinan earlier said P3 billion would be a “good price” for possible compensation by a future player for the 3G frequency turned over by PLDT unit Connectivity Unlimited Resources Enterprise (CURE) to the government.

READ: 3rd telco player must pay P3 B for 3G – MVP

In an interview over DZMM radio on Wednesday, Department of Information and Communications Technology Officer-in-Charge Eliseo Rio Jr. said Pangilinan agreed to return CURE frequencies “at no cost” to government.

"Gusto ni Presidente na kunin yung frequency at no cost to the government. 'Yun ang kanyang instuction," Rio was quoted as saying.

"Napaabot ko na kay MVP (Pangilinan) kahapon at pumayag na po siya sa kondisyon ni Presidente," he added.

In a speech on Tuesday, Duterte threatened to send tax auditors to telecom firms that he said have many “demands.”

Incumbents PLDT Inc. and Globe Telecom Inc. hold the majority of radio frequencies, which they acquired from their purchase in 2016 of San Miguel Corp.’s telco assets.

PLDT surrendered the 3G frequency of CURE to the National Telecommunications Commission in 2012 as one of the conditions set by the government for the telecom’s acquisition of Sun Cellular from the Gokongwei Group.

The NTC earlier planned to hold an auction for the 3G license of CURE, but was unable to bid it out due to issues in determining the cost recovery amount.

Earlier, the NTC said the 3G frequency surrendered by CURE would be part of the spectrum to be assigned to a new telecom player. 

A new telecom carrier that will invest for the first five years is targeted to be up and running by the first quarter of 2018.

READ: Duterte rejects DICT's request to extend deadline for arrival of 3rd telco player

The Philippine Competition Commission estimates that only 12.8 percent of the spectrum will be available for a potential third player.

Under the DICT’s Memorandum Order No. 001, companies eyeing the third telecom slot must possess a valid congressional telecommunications franchise, and must have a written and binding commitment from a foreign joint venture company, if applicable.

Applicants must also not be an affiliate of Globe Group or PLDT Group of companies.