Final goodbye: PLDT surrenders CURE’s 3G license

MANILA, Philippines – The country’s largest telecommunications group, Philippine Long Distance Telephone Co. (PLDT) has surrendered one of its 3G licenses to the government regulator, paving the opportunity for other industry players, including second-liner Globe Telecom and newest entrant San Miguel Corp., to bid for it.

In a text message to reporters, PLDT president Napoleon Nazareno confirmed that the one of the sought-after 3G frequencies previously held by the group’s unit Connectivity Unlimited Resource Enterprises Inc (CURE), has been returned to the National Telecommunications Commission (NTC) last week.

“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,” Nazareno said over the weekend.
 
This comes about 9 months after PLDT acquired then third-liner Digital Telecommunications (Digitel) from the Gokongwei group. The NTC gave its nod to the PLDT-Digitel deal on condition that Digitel keeps its own 10-MHz 3G license and CURE gives up its own 10-MHz and related permits.

Surrendering CURE back to NTC took time since PLDT said it re-arranged its other non-3G assets in CURE. This also involved transferring all 1.1 million subscribers under CURE’s Red Mobile brand to PLDT’s mobile unit, Smart Communications Inc.  

Globe, San Miguel eyes 3G

The NTC has up to 6 months or until January 2012 to bid out CURE as an entity and its 3G license via a competitive auction.

“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,” NTC commissioner Gamaliel Cordoba had previously said.
 
Globe Telecom Inc. had confirmed that it would bid for CURE when NTC auctions it off. Globe became a far-second industry player after the PLDT-Digitel deal.

Likewise, Ramon Ang, the president of San Miguel Corp., previously expressed interest to bid in CURE. San Miguel is the country’s biggest conglomerate which also has a telecommunications venture with partners from Qatar.

PLDT is barred to participate in the auction.

While PLDT will supervise the divestment of CURE, PLDT’s Nazareno said the proceeds from the CURE auction must cover the PLDT group’s P1 billion investment in it.

“Proceeds from the auction in excess of PLDT’s recoverable costs would be shared 50-50 with the NTC,” said Nazareno.

Smart bought CURE from the Ongpin family in 2008. – Rappler.com