MANILA - The Department of Information and Communications Technology (DICT) said on Monday the selection process for the Philippines' third major telecommunications company may be delayed by a suit lodged by NOW Telecom against the National Telecommunications Commission (NTC).

On Oct. 9, NOW Telecom sued the NTC, saying the agency had turned the search for a third telco into "a money-making scheme."

The company questioned the NTC's requirement that bidders put up a P700 million Participation Security, P14 billion to P24 billion Performance Security, and P10 million non-refundable Appeal Fee.

During a Senate hearing held Monday on the selection process, NOW Telecom legal counsel Atty. Aldritch Dy denied that the company was out to delay the selection of a third telco.

Dy, however, admitted that they were asking a Manila court to issue a temporary restraining order on certain provisions of the terms of reference.

He said the company was also willing to pay the amount stated in the terms of reference, just not with the NTC.

"We will consign the amount to the court, not with the NTC, precisely because the memorandum circular is not clear on the process of forfeiting the securities," Dy said.

Dy said the court was the proper and neutral venue for performance securities and other securities required by the NTC.

DICT acting Secretary Eliseo Rio, however, said that NOW Telecom was changing the terms of reference by insisting that the court hold the performance and participation bonds .

"And therefore, that would cause a delay," Rio told senators.

Rio has said that the required securities and fees were meant to ensure that the winning bidder for the third telco will have the financial and technical capability to compete against PLDT and Globe.

He said the fees also aim to discourage frivolous motions and protests which may delay the roll out of a third telco.

Dy, meanwhile, said that if NOW Telecom's plea for a TRO is not decided before Nov. 7, it may post the bonds with the NTC "or some other venue that would be allowed under the rules."

Rio also told senators that a "provisional" third telco could be named by November, barring court action.