MANILA — The selection for the local telecommunications industry’s new major player will push through on Wednesday, November 7, after the Manila Regional Trial Court (RTC) junked the petition for writ of preliminary injunction filed by Now Telecom.
The Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC) expects to name a provisional third telco player that will challenge the existing major players PLDT and Globe Telecom on that date.
“Bid will push through tomorrow. Deadline of submission will be until 10 a.m.,” NTC public information officer Paolo Arceo said in a text message to the Philippine News Agency (PNA).
In its decision dated Nov. 5, the Manila RTC Branch 42 said Now Telecom has no legal right to be entitled to a writ of preliminary injunction as the company has participated in the selection process through purchasing bidding documents.
“When plaintiff openly declared that it is not seeking to enjoin the selection process, plaintiff itself diluted or worse, mooted its own request for injunctive relief against the implementation of the assailed provisions of Memorandum Circular No. 09-09-2018. This is so because by conceding that the selection process ought to proceed, it cannot, in the same breath, refuse to comply with the mandates of the subject circular,” the decision which was written by Presiding Judge Dinnah Aguila Topacio stated.
Furthermore, Now Telecom has admitted during the hearings on their petition that it has no paid-up capital of at least PHP10 billion based on their latest financial statement which is one of the requirements to qualify as a third telco player.
“It so appears that plaintiff has yet to meet, at the time of the hearing for the writ, the financial yardstick necessary for it to participate in the selection process as a new major player, its right to be protected from the alleged unjust and confiscatory provisions of the Memorandum Circular No. 09-09-2018 is far from clear,” the court said.
“In fine, the Court finds that plaintiff is not entitled to the writ pray for. Wherefore, the prayer for issuance of writ of preliminary injunction is denied,” it added.
Now Telecom has filed its petition last Oct. 9 wherein it alleged that he provisions in the Terms of Reference were not taken up during a series of public consultations, particularly the PHP700-million participation security, the PHP14 to PHP 24-billion performance security, and a PHP10-million non-refundable appeal fee are barriers to entry and are “money-making schemes” imposed against the third telco.
The DICT has stressed that these provisions are aimed at ensuring that contenders have the financial and technical capability to deliver telco services in the country in competition with the existing duopoly.
The NTC has started issuing bidding documents to prospective bidders last October 8.
“Opening of bids will immediately follow after the 10 a.m. deadline on November 7,” according to the NTC.
The winning bidder will still undergo a post qualification process, wherein the DICT and the NTC verify their documents.
“This means that the contender with the highest committed level of service must still prove that all documents it submitted in its commitments are accurate, and that it must be able to form its committed organizational structure within 90 days,” according to DICT Acting Secretary Eliseo Rio Jr.
The new major telco player will be selected through its highest committed level of service based on the following criteria: national coverage (40 percent), internet speed (25 percent), and capital expenditures (35 percent).
To date, at least 10 companies have bought selection documents from the NTC, namely China Telecom, Philippine Telegraph and Telephone, Now Telecom, Telenor ASA Group, Udenna Corp., LCS Group of Companies and TierOne, Mobitel Holdings GmbH, Converge ICT, AMA Telecommunications, and an undisclosed bidder. (/PNA)
