by Dennis Estopace
BREAKING the chokehold by two companies on the country’s telecommunications sector is now up to government, according to Now Corp. CEO Mel V. Velarde.
Velarde said one of the ways the Duterte administration can do so is for the Supreme Court to finally decide on his company’s petition for a 3G license.
“It’s been nine years and some of the players involved in that petition has either been bought or folded,” Velarde told reporters after a news briefing on Wednesday. “We’re the only one left.”
According to Velarde, the listed technology firm is ready to roll out investments once Now Corp. gets the license.
“In a year’s time, we can start rolling out about 300 cellular sites,” he explained. “That would be good for poor Filipinos because it may mean lower prices in mobile broadband access.”
Velarde expects to become a “strong third-player” in the telecommunications sector currently dominated by Globe Telecom Inc. and PLDT Inc.
He added that the company would give the voice and text business to the two firms.
“Ibibigay na namin sa kanila ‘yon,” Velarde said adding the company’s telecommunications subsidiary would concentrate on data.
According to Velarde, the broadband services to enterprise market alone is worth $25 billion.
And that is only being generated by the business-process outsourcing sector, he said. “There’s the second $25 billion, which is generated by remittances by overseas Filipino workers.”
Velarde said the company promises to deliver two things: no overloading and no maximum data cap.
Velarde is challenging the two telcos to disclose the frequency being used by each of their respective cellular sites.
By doing so, he said, the public would be aware how much frequency these companies have but are not using.
Likewise, Velarde said government should look into how these companies acquired these frequencies.
“They got these for free,” he said. “[The] government should at least earn something from these frequencies.”
Velarde believes Filipino consumers should not be short-changed, as “they have the purchasing power greater than what they have six or nine years ago.”
“As long as you offer them quality services, we believe the Filipino consumer would pay even if the service is a little more expensive.”
According to Velarde, the company is putting in $30 million once it receives its license. He said the fund would mostly go into the putting up of cellular sites, which is estimated to cost at $150,000 each.
Velarde said they are open to accomplishing the goal of putting up 300 cellular sites with a foreign partner.
“We’ll let you know who when we get the license.”
Source: http://www.businessmirror.com.ph/2016/08/10/freeing-telco-sector-up-to-government-velarde/