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MANILA, Philippines - A company that had participated in an old government program putting up wireless telephone services in remote areas has secured a permit to offer broadband across the country.
The National Telecommunications Commission (NTC) gave Multi-Line Communications Inc. a permit to operate and maintain a data leased channel circuit network in Metro Manila, Cavite, Laguna, Batangas, Rizal, Pampanga, and in Regions 5 to 13. The permit is valid for 18 months.
The regulator has given the company a year from March 5, 2012 to begin offering broadband services.
"The company shall complete the installation of the system and commence providing the service within the period of 12 months…and inform the NTC, at least 15 days before the date of commencement of actual service, to allow the agency to conduct an inspection and field tests,” the regulator said.
Multi-Line should also submit a quarterly report on its operations and finances a year after it begins commercial operations.
The NTC said Multi-Line is legally, financially and technically qualified to offer wireless and wire line broadband services.
“With the applicant’s increase in paid-up capital of P27 million, the applicant can be considered capable of undertaking the proposed project,” the regulator said in its decision.
The NTC required Multi-Line to jack up its equity from P1.6 million to P26.8 million in the first two years, and to P55 million by year five.
In line with this, the company should seek the Securities and Exchange Commission's permission to hike its authorized capital stock to P108 million.
Under its five-year rollout plan, Multi-Line would spend P183 million for capital expenditures.
The company should turn in a profit of P598.47 million by the end of its rollout, with revenues coming from subscription of its wireless local loop (WLL) and wireless broadband Internet.
Multi-Line plans to charge P15,000 a month for a two megabytes per second WLL service, with subscribers charged a one-time P15,000. Another P38,400 a year would be charged for lease of equipment.
According to its 2010 annual report, Multi-Line had assets of P981 million, liabilities of P713.64 million and capital of P267.36 million.
In the late 1990s, the company had taken part in a government program aimed at establishing telephone service in remote areas.
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