Terms of Reference for third telco out

The Department of Information and Communications Technology (DICT) yesterday issued the latest draft of Terms of Reference (TOR) for selecting the country’s third telco player (New Major Player or NMP) in time for a public consultation scheduled next week. Regulators increased the number of members of the NMP Selection Committee and revised the selection criteria to include National Population Coverage (with 40 percent weight), Minimum Average Broadband Speed (20 percent weight) and annual capital and operational expenditure (40 percent weight), computed annually over a five year span, or “Commitment Period.” The annual minimum levels for each of the criteria thirty percent for National Population Coverage, 5 Mbps for the minimum average broadband speed and 140 billion for the capital and operational expenditure. For every whole one percent of the National Population Coverage over thirty percent in any year, up to a maximum coverage of seventy percent of the National Population Coverage, a Participant in the NMP bidding will receive one point per annum. For every whole one Mbps of Minimum Average Broadband Speed over 5Mbps up to a maximum Minimum Average Broadband Speed of 45 Mbps, a Participant will receive one-half point per annum. For every 12.25 billion-over 140.0 billion capital and operational expenditure up to a maximum of 1130.0 billion, a Participant will receive one point per annum. A Participant’s annual point score shall then be multiplied by the corresponding weight reflecting the Government’s policy priority of encouraging rapid network roll-out and the difficulty of deploying the NMP’s network and facilities in the shortest possible time. In the 1st year, the weightage is 100%; in the second, 140%; 3rd, 130%; 4th, 70% and 5th, 60%. At the end of the Commitment Period, the NMP is required to have a fifty percent minimum National Population Coverage at the End of the Commitment Period. Furthermore, the National Telecommunications Commission (NTC) increased the members of the NMP Selection Committee from the original three (one chairperson and two members) to five ( one Chairperson and up to four members). (EVA)