Cellcos put up ‘performance bonds’ to guarantee 3G delivery

3 Jan 2006

Filipino telecoms operators Smart Communications, Globe Telecom, Digital Telecommunications and Connectivity Unlimited Resource Enterprise (Cure) have each put up a PHP300 million (USD5.6 million) performance bond to guarantee the launch of 3G services by 2008. The four were recently issued with UMTS concessions by the National Telecommunications Commission (NTC) and were required to post the bonds under Section 5.1 of the regulator’s 3G ruling. The NTC is allowed to dip into the bonds if the cellcos fail to comply with the terms of their licence awards, particularly the deployment of UMTS services to 80% of cities and municipalities by 2010. The licensees themselves say they do not see a problem with rolling out advanced mobile services.