‘Third player’ candidates ask for extra time to prepare
THE DEPARTMENT of Information and Communications Technology (DICT) may move the timeline for selecting the telecommunications industry’s “third player” to May, as potential entrants have asked for more time to prepare.
“Two months probably, from end of March,” DICT Officer-in-Charge and Undersecretary Eliseo M. Rio, Jr. told reporters yesterday during the public consultation on the selection of the third player.
He said interested parties have noted the lack of time to prepare for the selection process.
A move to May means the new telecom entrant will not be active within the initial deadline set by the DICT, which said it hoped to bring in a new entrant by the first quarter, on instructions from President Rodrigo R. Duterte to enhance competition in the industry.
Sundance Apolinario, chief information officer of satellite broadband firm G Telecoms, Inc., said during the consultation yesterday, “We are in the process of talking with our foreign partners. The timeline is too short. I understand that the President wants to deliver, but we’re talking about P300 billion.”
Former National Telecommunications Commission (NTC) Commissioner Ronald O. Solis also said the deadline is “too tight” and expressed concern on whether the DICT can evaluate bids and commitments in the time available. “Do you guys realistically believe that you can do the evaluation process by March?”
NOW Corp. head of business development Kristian Noel A. Pura told reporters after the consultation that “what the other stakeholders said was right.”
The terms of reference are scheduled to be released on Feb. 19, and bids are to be accepted in March. The third player is expected to be announced on April 2.
Mr. Rio said that DICT can ask the Office of the President for an extension of a few months only, not one year.
Basic requirements for the third telco are a congressional franchise for fixedline and mobile service, a commitment of P60 billion annually for five years, or P300 billion, and no aff iliation with PLDT, Inc. or Globe Telecom, Inc.
The third player will be awarded a block of frequencies not currently committed.
The third player will likely have to pay P3 billion for the 3G frequencies which PLDT, Inc. surrendered as a condition of government approval of a merger with Digitel Telecommunications Philippines, Inc.
Mr. Rio said that there are about three consortia seeking to be named the third player. One is headed by Philippine Telegraph and Telephone Corp. (PT&T), one by NOW Corp., and one by Converge ICT Solutions, Inc.
Mr. Pura confirmed that his company is in talks with other parties to form a consortium, but said they will participate in the selection process even without forming one. The company is also in talks for a foreign partner.
“Several companies have approached us to form a consortium, so we will be stronger,” he told reporters.
Asked for his group’s plans, PT&T Chief Operating Officer Miguel Marco O. Bitanga said in a text message, “We are not in talks with other local players for a consortium at this point.”
Converge ICT has not responded as of deadline time.
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