The Department of Information and Communications Technology on Monday issued the draft rules on the selection of a third major telecommunications player that will challenge the duopoly PLDT Inc. and Globe Telecom Inc.
Under the draft rules, the prospective bidders should have a net worth of at least P10 billion with a Congressional franchise to operate telecom services.
It said in case of a consortium, Filipinos should control at least 60 percent and at least one of the members should be a holder of a Congressional franchise.
Prospective bidders should not be a related party to any telecom group with a mobile and broadband wireless market share of at least 40 percent, it said.
The National Telecommunications Commission will assign frequency band “• 700 megahertz (MHz), 850 MHz, 2100 MHz, 2010 MHz, 2.5 GHz (gigahertz) 3.3 GHz, 3.5 GHz and 10.5 GHz to the new major player.
The new major player is required to post a performance bond equivalent to 0.005 of the amount of the committed investment for the first five years.
“The performance bond shall be forfeited in favor of the government if the selected entity fails to invest the amount specified in the yearly program of committed investment in support of its bid,” the rules stated, adding that the forfeiture would be on a yearly basis.
The new major player is also required to deposit a minimum of 30 percent of the committed investment for the first year with a government financial institution specified by the Department of Finance within 30 days from the award.
It should submit its roll-out plan within 15 days from the date of the award.
The third player is required to start commercial operations not later than 12 months from the date of award and should cover at least 80 percent of the provincial capital cities and towns and 80 percent of the chartered cities within five years from the date of award.
The DICT is set to hold a second stakeholders consultation on Feb. 27 at Novotel in Quezon City, while the public hearing is on March 6 at NTC headquarters in Quezon City.
The DICT targets to hold the bidding on May 18, later than the original target of March this year.
Among the interested players are Mel Velarde’s Now Telecom, PT&T and Converge ICT Solutions Inc., along with their foreign partners.