Now Corp. in talks with local telcos on forming a consortium

Listed technology firm Now Corp. is in talks with local companies on forming a consortium in response to the government’s call for a third telecommunications player.

Details of the partnership are now being finalized, but Now declined to name the other companies.

“Definitely, we will participate … several groups have contacted us to form a consortium,” Now Corp. business development head Kristian Pura told reporters on the sidelines of the  preliminary conference and consultation on selecting a third telco Wednesday in Quezon City.

“The consortium will require a foreign partner, kasi hindi naman kaya ng domestic players,” he said.

“That’s the requirement for us to have a foreign partner … So, Philippine consortium to partner with foreign player in order for us to participate, but we will wait for the TOR (terms of reference),” Pura noted.

The Department of Information and Communications Technology (DICT) is coming up with the final terms of reference on February 19.

DICT officer-in-charge Eliseo Rio said Philippine Telegraph & Telephone and Converge ICT Solutions Inc. have conveyed their intention to form their own respective  groups.

PT&T earlier said it was in talks with a South Korean telco and was working on a separate partnership with China Telecom, the Chinese government’s choice to enter the Philippines as the third telco player and compete with PLDT Inc. and Globe Telecom Inc.

Converge ICT Solutions Inc. is also interested to make a bid for frequencies from the National Telecommunications Commission.

As of 3:12 p.m., shares of Now Corp. has been trading at P5.26 apiece, up 13.61 percent from P4.63 Tuesday. —VDS, GMA News

Source: http://www.gmanetwork.com/news/money/companies/640908/now-corp-in-talks-with-local-telcos-on-forming-a-consortium/story/http://www.gmanetwork.com/news/money/companies/640908/now-corp-in-talks-with-local-telcos-on-forming-a-consortium/story/

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