“Most likely that will be the case here. But as to how they will be auctioned is something we have not yet discussed internally,” NTC Commissioner Gamaliel Cordoba said when sought for comment on PLDT’s announcement on Monday that it was ready to give up the 10 megahertz of 3G frequency spectrum of Connectivity Unlimited Resource Enterprises (CURE).
CURE is a unit of Smart Communications Inc., a subsidiary of PLDT.
The NTC is empowered to either auction the frequencies or have them directly assigned.
PLDT’s announcement on its frequency divestment plans is expected to “pave the way” for the NTC’s approval of the telco giant’s proposed acquisition of a 51.55-percent stake of Digital Telecommunications Philippines Inc. (Digitel).
Asked to comment on PLDT’s announcement, Globe Telecom Inc. President Ernest Cu said in a text message on Tuesday that it was “a step in the right direction.”
Globe, which also placed a bid to buy out Digitel, had urged the NTC to recall the frequencies of PLDT and reallocate these. Globe demanded that the PLDT group give up excess 3G frequencies of about 10 MHz. Sources privy to the deal said PLDT was amenable to this, provided Globe also gave up excess frequencies in the 900 bandwidth that are being used for 2G; the Ayala-controlled cellular firm rejected this.
Cu refused to say what Globe’s next move would be if and when PLDT returns the precious spectrum to the NTC. “We will wait until it really happens. Let’s not get ahead of ourselves. There is no notice of auction or return yet,” Cu said, when asked if Globe would bid for the frequencies.
Globe had said that if the deal went through without a fair divestiture of spectrum assets, “the resulting PLDT behemoth will hold lopsided majority of all available telephony frequencies,” which “should be cause for everybody’s grave concern.”
The NTC is expected to hand down its decision on the PLDT-Digitel deal on or before October 27, which marks the 90th day since legal documents have been filed by both parties.
But Cordoba clarified this deadline was still not final. “The 90-day period is just a guideline. It is possible that we can issue it on or before October 27 but it is also possible that we can’t yet. If we do need more time it would be a reasonable extension because this can be difficult,” he said.
Cordoba said as far as he is aware, this is the first in the industry that a phone firm will divest of its assigned frequencies.
The target closing of the PLDT-Digitel transaction was originally set for June 30 but this was moved many times because the NTC failed to issue a decision.
Cordoba said on Tuesday the NTC could be ready by next week to hand down its decision. He refused to disclose details of ongoing discussions with PLDT on its divestment plans.
“This is a big transaction that affects not only other phone firms but consumers as well. Whether or not PLDT divests, we are bound to issue a decision,” he said.
