The Daily Manila Shimbun

 

Duterte thankful to PLDT for returning frequency after threatening telcos with audit

February 7, 2018



President Rodrigo Duterte has thanked PLDT ( Philippine Long Distance Telephone) Inc. for agreeing to surrender to government one of its frequencies, which could be allotted for a third telecommunications player.

PLDT made the move after President Rodrigo Duterte warned he would order the Bureau of Internal Revenue to audit the telco businesses in the country.

"I had a warning for these people, the telcom. I told them, just send them this message: Do not ---this government.' Don't threaten (us) with cases," he said on Tuesday night during the anniversary of the National Economic and Development Authority in Pasig City.

He said the BIR would "start to audit you (telcos) during the first year of your business."

Presidential Spokesperson Harry Roque earlier said Duterte was "displeased" that the frequencies freely given to a telco company has to be bought back by government.

Roque did not name the telco company, but it turned out it was PLDT's Connectivity Unlimited Resources Enterprise (CURE).

Roque, in an interview, said Duterte was "thankful for PLDT's cooperation."

He reiterated the President's directive to have a third telco player to be operational by end of March or early April.

"PLDT's plan of returning CURE  frequencies to the government to be made available to the third telco player is a step to the direction. It will facilitate the setting up of the new major player that can effectively compete the market," Roque said.

Earlier, PLDT Inc. said it is waiving its rights to recover its investment for the 3G frequency that the company returned to the government after Duterte rejected its compensation claims.

“We actually have returned the CURE frequency to the NTC (National Telecommunications Commission) in 2011. I believe. What we are entitled to basically is reimbursement of our cost to acquire such frequency as part of our investment in Digitel/un Celluar then,” Manuel V. Pangilinan, chairman and chief executive of PLDT said in a text message.

“We are now prepared to waive our rights to such reimbursement. Effectively, we have returned the CURE frequency for free,” he added.

The NTC had estimated the cost recovery of the CURE 3G frequency amounted to P3 billion,which include its investment in CURE and payment of regulator fees, among others.

In 2008, Smart bought CURE for P419.54 million from the group of former Marcos Trade Minister Roberto Ongpin. Celerina Monte/DMS