PLDT moves to complete takeover of Piltel facilities
By Riza T. Olchondra
Philippine Daily Inquirer
First Posted 19:31:00 09/21/2008
Filed Under: Economy, Business & Finance
PHILIPPINE LONG DISTANCE TELEPHONE Co. is working to complete its takeover of subsidiary Pilipino Telephone Co.’s fixed line assets, which is seen to result in the extension of these facilities’ permits.
In various filings with the National Telecommunications Commission, PLDT has sought co-terminus permits for certain local exchange carrier assets in the provinces of Davao del Sur, Palawan, Marinduque, Masbate, Sulu, Zamboanga del Norte, Zamboanga del Sur, Tawi-Tawi, Misamis Occidental and South Cotabato, as well as the cities of General Santos and Baguio.
Since the regulator has already approved the sale of these assets to the parent company, PLDT said there was a need to peg the terms of their permits with PLDT’s franchise “in order to streamline the expiration dates of PLDT’s various CPCNs (certificate of public convenience and necessity).”
Piltel’s permits for these facilities are supposed to expire in September 2011 but if they become co-terminus with PLDT’s franchise, their permits will be valid up to November 2028.
Last month, NTC allowed PLDT to buy Piltel’s LEC assets worth P802.3 million, exclusive of the value-added tax. The deal included fixed assets, equipment, vehicles and the right to operate LEC and wireline telecommunications services to residential and institutional customers in Piltel’s service areas.
PLDT president and CEO Napoleon Nazareno said the takeover by PLDT of Piltel’s fixed line business would enable the latter to concentrate on its wireless offering, notably Talk N’ Text.
PLDT has been managing Piltel’s fixed line business since July 2001 under a facilities management deal. At end-2007, Piltel had about 40,415 fixed line subscribers.
Sale or lease of assets, certificates and franchises among telecommunications entities should be approved by NTC.
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