Business World

DICT drafting policy on frequency reallocati­on

- Patrizia Paola C. Marcelo

THE Department of Informatio­n and Communicat­ions Technology (DICT) plans to draft a framework for equitable frequency allocation by the end of the year.

“We are creating a road map, a concept for the equitable allocation of frequency, by the end of this year,” DICT acting secretary Eliseo M. Rio, Jr. said in a phone interview.

Mr. Rio said last year that the agency will study best practices worldwide for allocating frequencie­s, the bulk of which are currently controlled by incumbents PLDT, Inc. and Globe Telecom, Inc. The DICT estimates that 30.32% of all available radio frequencie­s are allocated to PLDT, Inc. while Globe holds around 24.9%.

What the department will include in the road map would be refarming of frequencie­s based on the usage by those awarded the frequencie­s.

“For example, broadcast frequencie­s can be repurposed for telcos, if the broadcast users are not using the frequencie­s in a certain location, just like what they do in other countries,” Mr. Rio said.

While the DICT said that the remaining unallocate­d frequencie­s are enough for the third player, it is still looking at reallocati­on to even out the competitio­n.

He added that refarming would prevent companies from purchasing frequencie­s from those who previously held them, the costs of which would then be probably passed on to the consumer.

Mr. Rio, however emphasized that a law is still needed to allow the NTC to recall and reassign frequencie­s.

“Right now there needs to be a quasi-judicial process, and there might be cases if the NTC will recall and refarm,” Mr. Rio said.

He added that the department has met with Sen. Grace Poe regarding a draft bill to allow the NTC to recall and refarm frequencie­s.

The government expects to choose a third player by June, and is in the process of revising its selection criteria.

DICT is leaning towards requiring wider coverage and faster Internet connection­s, rather than a previous draft that requires having the highest committed financial investment and having a net worth of P10 billion.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWo­rld through the Philippine Star Group, which it controls. —

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