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MANILA - The PLDT group has surrendered the 3G frequency of Connectivity Unlimited Resources Inc. to the National Telecommunications Commission last week as scheduled.
“We have complied already with the NTC conditions with respect to the transition period in clearing CURE with all assets except for the franchise, 3G frequency and other related permits,” said Napoleon Nazareno, president of Philippine Long Distance Telephone Co.
The turnover of CURE's 3G frequency is one of the conditions the NTC set for approving the PLDT group's acquisition of Digital Telecommunications Philippines Inc. last October.
The surrender of CURE's 3G frequency and its permits comes after the PLDT group successfully transferred the 1.1 million subscibers of Red Mobile to Smart Communications Inc.
“CURE remains to be an entity even if PLDT has ceased to use CURE. A letter from PLDT was sent to us last week when CURE was returned, so to speak, to us," said Gamaliel Cordoba, NTC chief.
With the return of CURE's 3G frequency and permits, the NTC is preparing for the auction of the same within six months.
“The return of CURE signals that CURE itself will be made available for auction soon. We will now have to start drafting the terms of reference for the bidding which may not take long,” said Cordoba.
Under the terms of the NTC approval of Digitel's sale to PLDT, the telecom giant is barred from taking part in the auction.
“The divestment of CURE would be effected through an auction to be supervised by the NTC. Proceeds from the auction in excess of PLDT’s recoverable costs would be shared 50-50 with the NTC,” said Nazareno.
“The NTC will be the one to auction the frequencies. There could be a floor price but we haven’t discussed it yet. A letter will be sent to the NTC regarding that,” he added.
The PLDT group had invested P1 billion in CURE after acquiring it from the Ongpin group for $10 million in 2008.
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