BUDDING third telco Now Corp. has signed a memorandum of understanding (MOU) with the National Transmission Corp. (Transco) for the potential use of the latter’s fiber and microwave assets to build a fixed broadband link.
In a disclosure to the stock exchange, the company said the deal, which also includes Now Telecom Co., is related to the use of the facilities of the National Grid Corp. of the Philippines (NGCP) and Transco.
“The MOU enables all parties to collaborate the potential use of Transco existing fiber and microwave assets nationwide of use and access in certain fiber-optic cores, vacant lots, tower spaces and related facilities currently being operated on by NGCP and owned by Transco for the purpose of building a nationwide fixed broadband link,” the disclosure read.
Now is gearing up for its bid for the slot of the third telco in the Philippines, which has been in the works for quite sometime now, and has been further deferred due to issues relating to frequencies, interconnection fees and infrastructure.
The deal between Now and Transco comes after the Department of Information and Communications Technology (DICT) signed a tripartite agreement with Transco and NGCP for the use of the two companies’ dark fiber.
Dark fiber refers to spare fiber-optic cables that will be used to boost the implementation of the National Broadband Plan (NBP). It spans 6,154 kilometer across Luzon, the Visayas and Mindanao.
Under the agreement, the government secured the right to use and/or access in certain spare fiber-optic cores, vacant lots, tower spaces and related facilities of the NGCP as backbone for the NBP.
The DICT is still finalizing the terms of reference for the third telco’s selection process. It has yet to release the document as an oversight committee created for the said initiative listed issues that need to be addressed before moving forward with the auction.
Aside from Now, other budding telcos include Philippine Telegraph & Telephone Corp. and Converge ICT Solutions Inc.