P10-billion capital threshold for 3rd telco player scrapped
“We are no longer basing it on the amount they will invest. We are now basing it on the actual resource and service the prospective player will commit. They have to assure the public that they can roll out in the first five years,” Rio said. File
MANILA, Philippines — The Department of Information and Communications Technology (DICT) is scrapping the minimum P10 billion net worth requirement for a prospective third telco player, its officer-in-charge Eliseo Rio said yesterday.
“We are no longer basing it on the amount they will invest. We are now basing it on the actual resource and service the prospective player will commit. They have to assure the public that they can roll out in the first five years,” Rio said.
Rio said the minimum net worth requirement would be replaced instead by a performance bond issued by the government.
In addition, the third telco player will be required to put in 25 percent of its equity in a bank after 90 days of winning the bidding.
“The performance bond can go higher or lower than P40 billion,” National Telecommunications Commission commissioner Gamaliel Cordoba said.
Meanwhile, Rio said the entry of the third major telco player may happen by the middle of the year as the winning bidder may be announced by May or June.
Based on a timeline presented by Cordoba, a public hearing on the first draft joint memorandum circular on rules and regulations on the selection of a new major player is scheduled on March 6.
The first draft was released last Feb. 19.
A second draft MC is scheduled to be published by March 13 after receiving position papers from stakeholders. A public hearing on the second draft is slated on March 23, to be followed by the submission of position papers until March 28.
The final version of the MC is expected to be published on April 9, which will be effective by April 24.
Submission of bids is set on May 24.
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