PLDT formalizes ‘at no cost’ return of CURE frequencies

Telecommunications giant PLDT Inc. has formalized its position to waive its rights to recover its investments on the spectrum frequencies it returned to the government, Information and Communications officer-in-charge Eliseo Rio said Saturday.

In a post on his Facebook account, Rio said PLDT has fully complied with its divestment of 10 megahertz of the 3G radio frequency that was previously assigned with Connectivity Unlimited Resources Enterprises (CURE) in a letter to the National Telecommunications Commission dated March 5, 2018.

"This frequency is now available to a New Major Telco Player," the DICT official said.

PLDT chairman, president and CEO Manuel Pangilinan said, in the letter, that the company confirms its intent to waive its rights to recover any and all costs of investment associated with the affected frequency, which he previously conveyed to Rio early in February. 

"Accordingly, the new assignee of the affected frequency shall have no obligation to reimburse the PLDT group for any of the said costs," Pangilinan said.

The PLDT chief also said the company attached a letter of CURE to the NTC, dated March 4, that CURE will not claim any cost associated with the affected frequency in the event such frequency is eventually assigned by the Commission to another qualified telecommunication company.

"With the foregoing, the PLDT group is deemed to have fully complied with its obligation to divest itself of the affected frequency," Pangilinan said.

The government compelled PLDT to divest from CURE and surrender its frequencies in exchange for the NTC’s approval of its merger with Digitel Telecommunications Philippines Inc., the then owner of Sun Cellular brand.

At that time, CURE was assigned with 10 megahertz of the 55 megahertz 3G frequency band.

While PLDT has waived its rights to a “cost recovery” provision in agreeing to surrender the spectrum frequencies assigned to CURE, earlier agreements with the government indicated that such payment should be made.

According to NTC Case No 2011-072, PLDT was supposed to be paid for its investment in CURE.

Pangilinan supposedly quoted P3 billion as a good price for the third telco to pay PLDT. But he clarified that he did not specify such requisite. —Ted Cordero/LBG, GMA News