31 Jul 2012
Philippine Long Distance Telephone Company (PLDT) hopes to recoup PHP2.125 billion (USD50.83 million) from its investment in Connectivity Unlimited Resource Enterprises Inc (CURE, trading as Red Mobile), more than double the figure it originally expected, the BusinessMirror reports. The paper quotes Enrico Espanol, head of legal affairs at PLDT subsidiary Smart Communications as telling the National Telecommunications Commission (NTC): ‘Please note that the cost recovery amount to which the PLDT Group is entitled, cannot be less than [PHP2.125 billion] to enable the PLDT Group to recover its investment in CURE.’ Espanol says the sum it is looking for includes the cost of its investments in the unit, as well as advances from Smart for operational costs and other funds received from stockholders and associated funding. Proceeds from the sale of CURE will be used by PLDT to partly bankroll operating expenses it added. The official also informed the watchdog that CURE has transferred its 1.1 million subscribers to Smart.
As reported by CommsUpdate yesterday, PLDT has finally relinquished to the telecoms regulator the 3G licence owned by CURE as part of the conditions set down in its takeover of fellow Filipino operator Digital Telecommunications Inc (Digitel) from the Gokongwei group last year. The NTC now has until January 2013 to reallocate CURE’s 3G frequencies via a competitive auction process, with commissioner Gamaliel Cordoba on record as saying that the watchdog is already in the throes of drafting the terms and conditions for the tender, which will not ‘take long’. PLDT, which acquired CURE through its mobile arm Smart Communications from the Ongpin family in 2008, is barred from taking part in the auction.