Re: Nationality Requirement of Third Telco

December 20, 2018SEC-OGC OPINION NO. 24-18RE: NATIONALITY REQUIREMENT OF THIRD TELCORomulo Mabanta BuenaventuraSayoc & De Los Angeles21st Floor, Philamlife Tower8767 Paseo de RoxasMakati City, 1226, PhilippinesAttention: Atty. Ronaldo Modesto J. VenturaDear Atty. Ventura :This pertains to your letter dated 29 November 2018 requesting from the Commission its Opinion on whether the terms of the binding Bidding Agreement dated 06 November 2018 entered into by Udenna Corporation (Udenna), Chelsea Logistics Holdings Corp. (Chelsea), China Telecommunications Corporation (CT) and Mindanao Islamic Telephone Company, Inc. (Mislatel) (Bidding Agreement) comply with the relevant rules on foreign ownership applicable to the telecommunications business. This is in connection with the requirement under Section 10.1 (b) of NTC Memorandum Circular 09-09-2018 or the Rules and Regulations on the Selection Process for a New Major Player (NMP) in the Philippine Telecommunications Market (NTC Bidding Rules) which states:"SEC. 10. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY (CPCN) AND TERMxxx xxx xxxb. Compliance by NMP of Paid Capital of at least P10B and implementation of the relevant provisions of the Bidding Agreement, if applicable...