Aspirant for 3rd telco sues NTC for 'money-making' requirements
MANILA, Philippines — NOW Telecom has sued the National Telecommunications Commission for allegedly inserting new “money making” requirements in the final rules on the selection of the country’s third telecommunications player.
In a statement, the affiliate of publicly listed company NOW Corp. said a case was filed on October 8 against the NTC for its supposed insertion of new requirements that were not taken up during public hearings on the selection rules.
Among the new requirements, according to NOW Telecom, were the posting of a P700-million “participation security,” P14- to P24-billion performance security and P10-million non-refundable appeal fee.
NOW Telecom said the additional requirements were “barriers to entry” and can be declared “onerous, confiscatory and potentially extortionary.”
The third telco aspirant also said President Rodrigo Duterte should receive all the bidding documents on November 7 and choose the new telco provider, not the NTC.
“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 [Terms of Reference] for the third telco,” NOW Corp. President and Chief Executive Officer Mel Velarde said.
NOW Telecom files case against the NTC “over claims of legal violations” in the terms of reference for the bidding of the third telco slot. The firm says NTC inserted requirements not taken up during the public hearings @News5AKSYON @onenewsph pic.twitter.com/IzQWYssNPv
— Bim Santos (@josebimbosantos) October 9, 2018
Under the 27-page memorandum circular, the company with “highest committed level of service” will be picked as the country’s new telco player.
Four local firms and only one foreign company, Norway’s Telenor Group, purchased bid documents on Monday — the first day of its availability.
The Department of Information and Communications Technology has said the government is expected to name the new entrant in December this year.
President Rodrigo Duterte had invited foreign firms, backed by a consortium of Filipino businesses, to take a role in the country’s wireless communications market to stir up competition.
Incumbents PLDT and Globe said they welcome the new telco challenger. — Ian Nicolas Cigaral
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