NOW telco franchise extended for 25 years

MANILA, Philippines — The government has approved the extension of the franchise granted to NOW Telecom Co. Inc. for the operation of a telco network for 25 years or until 2043.

In a disclosure to the Philippine Stock Exchange, NOW Corp. said its affiliate’s franchise has been extended for another 25 years or until 2043 under Republic Act 10972 signed into law by President Duterte on Feb. 22.

“With the said law, NOW Telecom, as a telecommunications company, now has privileges similar to those granted to existing dominant players in the industry,” NOW Corp. said.

The company is among those expected by the Department of Information and Communications Technology (DICT) to participate in the selection of a new major telco player.

Earlier, Kristian Pura, NOW’s head of enterprise marketing, said the company would definitely participate in the selection of the third telco player.

He said NOW is in talks with other firms to form a consortium.

DICT officer-in-charge Eliseo Rio Jr. said other firms that are expected to participate in the selection process are Philippine Telegraph and Telephone Corp. and Converge ICT Solutions Inc.

According to the draft rules and regulations released for the selection of the country’s new major telco player, the new carrier would need to have a net worth of at least P10 billion.

The new player should also be at least 60 percent Filipino-owned and not be connected to telco players with at least 40 percent market share such as PLDT Inc. and Globe Telecom Inc.

The participant which has the highest bid based on the net present value of committed investment for five years, and net book value of existing telecommunications facilities would be selected as the winner. – Christina Mendez