MANILA, Philippines – Eliseo Rio, Department of Information and Communications Technology (DICT) officer-in-charge, said yesterday that the agency is disposing of the minimum net worth requisite of 10 billion pesos for a potential third telecommunications company player.
He said that they are not to base the selection of a third telco anymore on the sum that a company will invest. Hence, the agency will be looking into the substantial service and resource that a potential company will give. He said that the prospects should have to guarantee the people that they can provide their service in the initial 5 years.
Last week, the government issued a guideline for choosing a new telecommunications company player. Companies looking forward to joining the telco sectors in the Philippines are required to have a minimum net worth of 10 billion pesos as well as a legislative franchise.
Rio noted that a government-issued contract bond would replace the minimum net worth requisite.
Furthermore, the third telecommunications company player also needs to deposit into a bank 25 percent of the company’s equity 90 days after it secures the bidding.
According to Gamaliel Cordoba, commissioner of the National Telecommunications Commission (NTC), such contract bond can be beyond or below 40 billion pesos.
In the meantime, Rio mentioned that the listing of the new telecommunications company player may take place mid-year as the bid’s winner may be revealed in either May or June.
According to a timeline that Cordoba presented, scheduled to be held on March 6 is the hearing on the initial draft of the joint memorandum circular on the rules and regulations on the third telco player selection process.
The initial draft was published last week, on February 19.
The next draft of the memorandum circular is planned to be released on March 13 following receipt of position papers from the stakeholders. The hearing on the next draft is scheduled on March 23. After which is the submission of position papers up to March 28.
The final and last draft of the memorandum circular is presumed to be released on April 9 and will take effect on April 24.
Meanwhile, bid submission is scheduled on May 24.
As per the guidelines issued, for bidding companies, a minimum of 60 percent of its shares must be Filipino owned. The company also should not be related to any telecommunications group having a market share of 40 percent in the wireless and mobile division.