Gov’t to finalize frequencies for new telco player by June or July

The government intends to finalize the frequencies to be awarded to the new major telco player by June or July.

“We have to finalize availability of frequencies. You know, this is what is taking long because there are frequencies owned by other telcos that would need some legal procedures, particularly, Bayantel (Bayan Telecommunications Inc.),” Information and Communications Technology acting secretary Eliseo Rio Jr. said.

He said the government would want to make a final decision by June or July on the 3G frequency won by Bayantel which would be included in frequencies to be awarded to the new telco player.

In 2005, the National Telecommunications Commission (NTC) awarded slots of 3G frequencies to PLDT Inc.’s Smart Communications Inc., Globe Telecom Inc., Digitel, and Connectivity Unlimited Resource Enterprises Inc.

While Bayantel won the fifth 3G frequency slot through an appellate court ruling in 2010, it was challenged by the NTC and the case is pending in the Supreme Court.

“There is an agreement that it can be settled out of court before the bidding starts,” Rio said.

He said the government wants to come up with an equitable way of distributing Bayantel’s 10 Megahertz (MHz) on 3G frequency, if and when the legal procedures are completed.

“NTC has to decide how to distribute it equitably because as of now, on 3G, PLDT has the most share, 25 MHz. The new player will get 15 MHz and Globe has only 10 (MHz). So, if we give back Bayantel, it will be unfair if it will be given to third telco player because 25 MHz on PLDT, 25 MHz for new player, Globe will still remain at 10 MHz and Globe’s traffic on 3G is even more than PLDT. So, we have to decide on the best way of distributing 10 MHz to more or less, (have) equitable playing field,” he said.

He said the government expects to approve the terms of reference (TOR) for the selection of the third telco player during a meeting to be held on Wednesday.

After the TOR’s approval, he said it would be published and a public hearing would be conducted the following week to get the comments of the stakeholders.

He said the government would want to have the final TOR by the end of June and for the bidding process to take place in August.

Under Memorandum Order 2 released by the DICT earlier, parties interested to bid for the third telco slot should have a paid in capital of at least P10 billion.

Contenders should also hold a Congressional franchise not related to any dominant telco player and should not have any liabilities with the NTC.

For the selection process, the applicant with the highest committed level of service or investment for the first five years of operations would be named as the new major telco player.

President Duterte wants a new telco player to compete with incumbent players to provide more options and better service to consumers.