Now Corp. says third telco must succeed vs. ‘true enemy’ Globe, PLDT-Smart

Now Corp., whose affiliate Now Telecom backed out of the third telco initiative, said Friday the upcoming new major player in the telecommunications industry must succeed against the so-called duopoly of Globe Telecom and PLDT-Smart.

"The new major player must eventually succeed... whoever, emerged as the winner we must help them succeed against the true enemy of the people - the duopoly because it has abused the consumers for many years," Now Corp. president and CEO Mel Velarde said in a press conference in Manila.

Both Globe and PLDT-Smart have earlier expressed it is ready to compete with the new major player and it welcomes the entry of a competitor. 

Now Telecom, on Wednesday, decided to no longer pursue bidding for the third telco slot as the company's lawyers advised them that it will affect their case before the Court of Appeals to reverse the ruling of the Manila Regional Trial Court Branch 42.

In a decision dated November 5, Judge Dinnah Aguila-Topacio denied Now’s prayer for a writ of preliminary injunction.

The telco wants to invalidate certain provisions of the terms of reference, specifically the P700-million “Participation Security,” the P14 to P24-billion “Performance Security,” and the P10-million non-refundable “Appeal Fee.”

During the press conference, Velarde said he does not care whoever wins the third telco bidding as the "new major player is only one of the many exercises for restructuring an industry."

"I don't care whether that is Dennis Uy, Governor Chavit, or Bong Tan of PT&T, whoever wins would be good for the overall industry," he said. — LDF, GMA News