But Recto neither confirmed nor denied the report, only describing CURE as a company backed by an investment group led by businessman and former Department of Trade and Industry secretary Roberto Ongpin. The company has no experience as a mobile operator but was previously a player in the prepaid Internet card business.

Onset of handsets

With 3G becoming more imminent, these players are hoping this would encourage handset makers not only to make more affordable 3G mobile phones but also to make them more readily available in the Philippines.

Handset makers like Nokia and Sony Ericsson, for example, have already introduced WCDMA (the standard that supports 3G) handsets locally but these handset models still cost more than US$200 or approximately P20,000.

CURE's Recto said the company is looking at partnering with manufacturers to subsidize the cost of 3G handsets. Meanwhile, Smart's Isberto noted plans by Chinese manufacturer Huawei Technologies Co. Ltd, to come up with 3G-capable handsets priced at around $100.