Duterte extends Smart franchise

The flagship mobile unit of PLDT Inc. said its congressional franchise had been extended by another 25 years by President Duterte.

PLDT said in a statement that Mr. Duterte signed into law RA No. 10926, which extended Smart’s franchise until 2042. The franchise, which allows Smart to provide telco services to the public, was set to expire last March.

Leaders of the Senate and House of Representatives earlier came together to approve the extension of the franchise, which was first granted in 1992.

PLDT earlier warned lawmakers that their inaction on the extension could prompt the PLDT group to go into “general default” on existing loans.

The bill was passed by the House of Representatives in January this year, and was subsequently amended by the Senate earlier this month. The amendments were then accepted by the lower house last March 14.

The Senate version, as with the House of Representatives, allowed an exemption to the requirement for Smart to sell at least 30 percent of its shares to the public via an initial public offering within two years. —MIGUEL R. CAMUS