Duterte Approves NOW Telecom’s Franchise Extension Until 2043
Malacañang has approved a 25-year franchise extension for NOW Telecom—a potential third telco player in the Philippines, opposite Smart/PLDT and Globe.
“With the said law,” says CEO Mel Velasco Velardo via Facebook. “NOW Telecom, as a telecommunications company, now has privileges similar to those granted to existing dominant players in the industry.” The post comes with snaps of documents showing the approved company’s franchise up to the year 2043.
NOW Corporation previously serviced large corporations and enterprises by offering high-speed fiber connection to office buildings. The approved franchise extension entails a focus on consumer products similar to its rivals are currently offering.
The signed agreement falls under the Republic Act No. 7301, which states:
REPUBLIC ACT NO. 7301 – AN ACT GRANTING SATELLITE PAGING SYSTEMS PHILIPPINES, INC., A FRANCHISE TO CONSTRUCT, ESTABLISH, OPERATE AND MAINTAIN RADIO PAGING SYSTEMS AND TRUNKED RADIO SYSTEMS WITHIN THE PHILIPPINES FOR A PERIOD OF TWENTY-FIVE (25) YEARS, AND FOR OTHER PURPOSES.
The Department of Information and Communications Technology (DICT) expects to announce the third telco player by the first half of May.