DICT to recover PHP24-B bond if Mislatel sells company

DAVAO CITY The Department of Information and Communications Technology (DICT) will recover the PHP24-billion performance bond of the third winning telco and demand the return of frequency if it sells the company in the future.

Ganyan katindi ang policy (That's how tough our policy), DICT OIC-Secretary Eliseo Rio told Davao reporters in a press conference on Thursday at the Royal Mandaya Hotel here.

Rio said Mislatel Consortium, which has been provisionally awarded the third telco slot, is not allowed to offer its company to others if it wants to stop operation in the future.

There is a provision that third telco will not be allowed to sell its company in the future. If it sells the company babawiin namin ang performance bond (we will recover the performance bond), Rio said.

He said Mislatel will be required to post the PHP24 billion performance bond before it will be given the frequency. The amount is 10 percent of its capital expenditures amounting to PHP250 billion in the five-year period.

He said performance bond is part of the company's commitment to the government to sustain and compete with existing players.

It may be recalled that Sun telecom was supposed to be the third player, but it was later acquired by telecommunications giant Smart.

A joint venture of Udenna Corporation and China Telecom, Mislatel won the bidding by default after Sear Telecom and the Philippine Telephone and Telegraph Corporation (PT and T) were disqualified due to lack of required documents.

Rio reiterated that the new major telco player must have the financial and technical capability to compete with existing players PLDT and Globe Telecom in delivering communication services to the public.

Mislatel has committed to provide Internet speeds of 55Mbps covering 84 percent of the population.

Rio said Mislatel will go online after all evaluation procedures are completed. (Lilian C Mellejor/PNA)

Source: Philippine News Agency