NOW sues NTC over alleged violations in 3rd telco rules

MANILA, Philippines — Third telco aspirant NOW Telecom, an affiliate of publicly listed company NOW Corp., filed a case on Monday against the National Telecommunications Commission (NTC) for alleged legal violations in the new major player terms of reference (TOR) which took effect last week.

NOW Telecom questioned the insertion of new requirements in the TOR, which it said were not taken up during the public hearings.

The firm said the additional requirements, which it referred to as “barriers to entry,” include the P700 million participation security, P14 billion to P24 billion performance security, and P10 million non-refundable appeal fee.

The new requirements, it said, not only violate existing laws, but could be declared “onerous, confiscatory and potentially extortionary.”

“NOW Telecom is suing NTC to protect its public shareholders and President Rodrigo Duterte from any suspicion that he is complicit to the money making schemes in the TOR for the third telco,” NOW Corp president and chief executive officer Mel Velarde said.

Velarde said NOW Telecom prefers Duterte to receive all the bidding documents on Nov. 7. He added that it would also be best if the President, and not the NTC, would be the one to choose the new major player.

NOW was among the initial five companies that purchased the P1 million bid documents during the first day of its availability on Monday, the same day it filed the case against the NTC.

NOW Telecom earlier urged the government to require bidders to submit their respective roll-out plans as part of the selection process for the new major player in the telecommunications sector. The company’s suggestion was not incorporated in the final version.

NOW is a listed firm in the Philippine Stock Exchange which is in the business of providing telecom, media, and technology service.