Senate starts review of third telco selection today
A transparency group yesterday expressed concern over the rushed manner by which the Department of Information and Communications Technology (DICT) is selecting the so-called third player.
Transparency in Public Service (TIPS) said the public might end up shortchanged or have national security compromised with the entry of a third telecommunications firm seen to break the duopoly in the sector.
Sen. Grace Poe, chairperson of the Senate public services committee, also expressed alarm over the DICT’s selection process.
The Poe committee, in its exercise of oversight functions, starts today hearings into the entry of the third telco player in anticipation of the reported award next month.
“We need to have meaningful competition in public utilities like telecommunications that will translate to lower costs and better service,” Poe said.
Poe made the remark in the light of reports that the Philippines ranks near the bottom in internet speed globally, and has one of the most expensive mobile and data rates.
At least five local firms – Converge ICT, Udenna Corp.; TierOne Communications International Inc.; LCS Group of Companies; Philippine Telegraph and Telephone Corp. (PT&T) and Now Corp. – are reportedly vying for the slot and have submitted the list of their promises.
Three foreign firms have also expressed interest in the bidding, namely China Telecom Corp. Ltd.; Mobiltel Holding GmbH from Austria; and Telenor Group from Norway. They have already submitted the required forms.
TIPS spokesman Brent de Jesus said Filipinos definitely want cheaper and more reliable alternative to the existing duopoly, and of course, would like a new company to come in as soon as possible.
This does not mean, however, the DICT should cut corners in selecting the best and most qualified aspirant, he said.
In this case, the government will no longer apply the traditional auction model, and instead adopt a so-called “beauty contest” format based on the highest level of commitments on speed, coverage and financial capability, De Jesus said.
“The DICT has repeatedly emphasized the word ‘commitment’ in its selection criteria, so in effect, they will be making a highly crucial decision based on a promise and a pledge,” De Jesus said.
“Because they are so pressured by the self-imposed November deadline, they will have to take these promises at face value, and simply hope that the companies will keep their word,” he said.
De Jesus also questioned the DICT’s procedure of assigning points for each category (speed, coverage, and financial capability) based on committed thresholds and minimums.
He said it would not make any sense for a bidder to commit the minimum requirement, so they will most likely list the maximum threshold for each category.
De Jesus warned it was inevitable that there will be a tie, if not multiple ties, and the DICT will then resort to a “game of chance” to determine the winner.
“That’s one huge gamble, considering what is at stake,” De Jesus said.
He urged the DICT to consider other factors aside from the submitted promises.
“Some companies are totally new to the telecom industry, while others have a proven and measurable track record of delivering services. I think it is but fair to take these into consideration,” De Jesus said.
“On the other hand, there is a bidder that may pose a threat to our sovereignty and national security. Shouldn’t that be take into account as well?” De Jesus said, without mentioning the name of the firm.
Camarines Sur Rep. Luis Raymund Villafuerte said the government should force the country’s duopoly telecommunication giants to improve their internet services in light of the soon-to-be-enacted law on telecommuting.
“More than telling private telcos to shape up, the NTC should also carry out measures to further bring down the costs of internet service in the country to encourage more employers to adopt the flexi-work arrangement if and when feasible,” he said.
Villafuerte wants NTC to crack the whip on telcos for them to improve their internet signal nationwide, so as to “remove hitches in the imminent implementation of the would-be telecommuting law allowing employees to do their jobs at home.”
The Work from Home Bill, according to Villafuerte’s Senate counterpart Joel Villanueva – who heads the Senate committee on labor, employment and human resources development – is awaiting the signature of President Duterte after the House of Representatives and Senate ratified the proposed measure.
He said internet speeds of up to 100 mbps are now possible under current plans offered by private telcos, but these remain too expensive and are only limited to certain areas across the country.
“Our problem is how to make them more affordable and accessible to more people. How can we encourage employers to adopt telecommuting if they find it too expensive to shoulder the mobile data expenses of their employees?” he asked.