PLDT demands P2.1B for surrender of Cure 3G frequency

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Divesting the 3G frequency was part of the conditions laid down by the National Telecommunications Commission (NTC) before PLDT was allowed to acquire Sun Cellular-owner Digitel. In a letter to the NTC, PLDT said it was entitled to Cost Recovery Amount (CRA) P2.125 billion to enable the company to recover its investment in Cure. ?This amount includes, among others, the total cost of equity investments in Cure; advances from Smart for operating requirements; advances from stockholders and associated funding costs,? the company said. Cure, short for Connectivity Unlimited Resources Enterprises, was acquired by PLDT from the company owned by former government executive Roberto Ongpin. PLDT merely used the 3G frequency it bought from Cure as the mobile brand never really took off the ground. In the letter, PLDT also said the ?divestment sale? shall be undertaken through a sale of shares of stock to the winning bidder.? ?It is our position that it is only just and reasonable for the winning bidder to bear the costs of any and all taxes due on the transaction and its incidents, including capital gains tax, documentary stamp tax, value-added tax and withholding tax, considering that the sale is in compliance with the order of this Honorable Commission,? it said. PLDT also informed the NTC that it has transferred its Cure subscribers to Smart Communications as of June 30, 2012. ?Accordingly, it has published a notice to the public to this effect, stating that the subscription contracts with Cure subscribers, and all rights, interests, and obligations of Cure thereunder, have been assigned to and assumed by Smart,? it said. ?With regard to the migration of the Cure subscribers to Smart plans and services, we assure this Honorable Commission that we shall observe the usual procedure in migrating Cure’s prepaid and postpaid subscribers and in offering them alternative plans in Smart,? it added. ]]>

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