MANILA, Philippines - Multi-Line Communications Inc. has been granted a permit to offer broadband services by the National Telecommunications Commission (NTC).
Multi-Line Communications, Inc. now has the permit to operate and maintain data leased channel circuit network in the provinces of Cavite, Laguna, Batangas, Rizal, Pampanga, the National Capital Region, and Regions 5 to 13.
The NTC said it found Multi-Line legally, financially and technically qualified to offer wireless and wireline broadband services.
The company was required to have a total equity of P55 million for 5 years, but it should have P26.7 million for the first 2 years
"With the applicant's increase in paid-up capital of P27 million, the applicant can be considered capable of undertaking the proposed project," it said.
Multi-Line will increase its authorized capital stock from P1.6 million to P108 million once it secures approval from the Securities and Exchange Commission.
The company is setting aside P183 million in capital expenditure for the first 5years of operation.
Based on its 2010 annual report, Multi-Line's assets are at P981 million, liabilities stood at P713.64 million and capital at P267.36 million.
The firm's revenues will come mainly from subscription of wireless local loop (WLL) and wireless broadband internet (WBI). It plans to sell its WLL service at P15,000 per month plus a one-time charge of P15,000 per client with an average of 2mbps bandwidth requirement. All of its clients will be charged P38,400 per year for the lease of subscriber equipment installed.
The NTC required Multi-Line to start offering WLL and WBI within a year from March 5, the day when its application was approved.
The provisional authority granted to Multi-Line is valid for 18 months.