Globe needs PLDT's Cure, CEO says
MANILA, Philippines - Ayala-owned Globe Telecom Inc. will bid for the third-generation (3G) license of Connectivity Unlimited Resource Enterprises Inc. (Cure) once the latter's parent, rival PLDT, divests its interest in the company.
Company CEO Ernest Cu said Globe is "quite interested" and will "bid aggressively" for Cure, which carries the Red Mobile brand.
"We need Cure. We have a premium base and those consumers are going to ask us to provide faster services," Cu said during a press conference after Globe's annual stockholders meeting on Tuesday, April 17.
Cure's sale is a condition to the National Telecommunications Commission's (NTC) approval of the deal between Philippine Long Distance Telephone Co. (PLDT) and Gokongwei group involving the sale of Digital Telecommunications Philippines Inc. (Digitel).
Based on the divestment plan, Cure will sell its Red Mobile business to PLDT unit Smart Communications Inc., which in turn will sell all its rights and interest in Cure.
Cure and all its remaining assets, including its congressional franchise and its 10 megahertz 3G license, will be surrendered to the NTC for bidding.
PLDT was due to submit a progress report on its divestment to NTC last April 13, but this deadline was extended to April 23.
PLDT acquired Digitel, which controls third-ranked mobile provider Sun Cellular, in October, giving it control of 70% of the domestic mobile cellular phone market. - Rappler.com, with reports from Katherine Visconti