Globe pushing through with CURE bid

MANILA, Philippines – The country’s second-largest telecommunications firm, Globe Telecom Inc, expects competition for the 3G license of a unit of top player Philippine Long Distance Telephone Co (PLDT) to be tight.

Nonetheless, the company is pushing through with its plan to bid for it.

“This won’t be easy given the players involved, but we’ll go for it,” said Globe President and CEO Ernest Cu.

PLDT unit Connectivity Unlimited Resource Enterprises Inc (CURE) surrendered its 3G license to regulator National Telecommunications Commission (NTC) last week.

Globe head for corporate and legal services Atty Froilan Castelo said CURE’s 10-megahertz 3G spectrum will help “provide our subscribers with a better network, especially with the growth of smartphones and the explosion of mobile data use.”

“We’ve been vocal about our interest to bid,” he said.

Aside from Globe, another player had expressed interest in CURE’s 3G license — San Miguel Corp.

San Miguel has branched out into the telecommunications industry by acquiring stakes in several telco companies, including Liberty Telecommunications Holdings Inc, Eastern Telecom and Bell Telecommunications. The conglomerate is also working on the acquisition of Express Telecommunications Co.

Last May, San Miguel President Ramon Ang said all of the conglomerate’s telco interests will be housed in one group. “Timing is the key. But we will come to that,” he said.

PLDT-Digitel deal

CURE returned its 3G license to the NTC as part of conditions for the approval of the deal between PLDT and third-liner Digital Telecommunications Philippines Inc (Digitel) last year. PLDT was allowed by the regulator to acquire Digitel on condition that CURE gives up its 3G frequency.

PLDT, which is barred from participating in the CURE auction, expects auction proceeds to cover its P1-billion investment in the company.

It said proceeds in excess of its “recoverable costs” will be “shared 50-50 with the NTC.” – Rappler.com