Palace: Up to NTC to test telcos’ performance amid Duterte threat to take over

IT will be up to the National Telecommunications Commission (NTC) to conduct the technical assessment if major telecommunication companies have improved their services before the end of the year as ordered by President Duterte.

In an online press briefing on Tuesday, Presidential spokesman Harry Roque said the NTC, as the regulatory body for telecommunication services and television broadcast, must set up the technical criteria, which should be complied with by Smart Communications and Globe Telecom Inc., the two leader who were called out by name at Duterte’s fifth State of the Nation Address (Sona) on Monday.

Some critics noted that the very same systemic problems hindering Smart and Globe are also now

hounding the third player, Dito Telecommunity, but the latter was not named in the speech.

“There are so many bases for that [telcos’ performance] and the NTC knows all of this. This includes dropped calls and the clarity of the calls. There are measurements for this,” Roque said.

He said the President may also have his own assessment on the matter depending on his personal experience in using the services of both telecommunication firms.

The Palace official said Smart and Globe are free to meet with the NTC and Duterte to inquire about the criteria in determining the efficiency of their services and raise their other concerns.

However, he noted, with or without such meetings, both companies are still expected to provide better services to their customers by December.

During his fifth State of the Nation Address on Monday, Duterte threatened to shut down Smart and Globe and for the government to take over the telecommunication industry, if both companies fail to provide the kind of service, which he said their clients deserve.

Duterte said he is eyeing to leave an improved telecommunication service as one of his administration’s legacies once he ends his term in the next two years.

This threat of a takeover sparked criticism in some quarters, as it could drive away investors. The nongovernment Infrawatch also noted that by failing to fully redress the problems of red tape hounding the players, government is setting them up for failure and takeover.

Poe’s take

MEANWHILE, the chief of the Senate Committee on Public Services conveyed Tuesday mounting public frustration over poor Internet services as well as the “woeful condition” of public jeepney drivers amid the Covid-19 lockdown.

Sen. Grace Poe pointed out that “frustration is growing by the day for fast, affordable and reliable Internet service, which has become a necessity as people rely more on digital technologies amid the pandemic.”

In a statement, Poe added: “We know that improving Internet service and coverage will happen not only by obligating the telcos but government regulators as well to remove the roadblocks to building the necessary communication infrastructure.”

She noted that pertinent national agencies and local government units should step up so that the approval of at least 25 regulatory permits for the construction of cell towers will not take six months.

“We are going to capacitate, through this bill, the LBP, DBP and PGC. These GOCCS will have to work together and raise the necessary funding to be able to address the requirements of the MSMES and strategic companies impacted by the crisis,” Cua added. The bill strengthens the PGC’S guarantee facility by increasing the maximum loan guarantee coverage per borrower, reducing guarantee fees, and other similar schemes to benefit MSMES heavily affected by the Covid-19 pandemic. It also expands the loan assistance programs, rediscounting and other credit accommodation facilities of LBP, DBP, Small Business Corporation (SBC) and Agriculture Credit Policy Council (DA-ACPC). The bill also identifies the targeted sectors and intended beneficiaries, as follows: (1) for LBP, players in the agricultural supply chain including farmers, fisherfolk, traders, suppliers, processors and aggregators, and; (2) for DBP, eligible MSMES engaged in infrastructure, services, service industry, and/or manufacturing business. Meanwhile, the measure mandates LBP and DBP to create a special holding company to be known as Accelerate Recovery to Intensify Solidarity and Equity (ARISE) for the purpose of reinvigorating strategically important industries experiencing liquidity issues due to the Covid-19 pandemic such as those from the agriculture, infrastructure, services and manufacturing industries. The bill also grants incentives and exemption privileges to PGC, LBP and DBP, and to ARISE and its subsidiaries. These include: exemption from payment of documentary stamp tax, capital gains tax, creditable withholding income tax, value-added tax, gross receipts tax, and other taxes imposed under the National Internal Revenue Code of 1997; exemption from the Government Procurement Reform Act for mandaterelated procurements for a period of three years; and exemption from the GOCC Governance Act of 2011 and Philippine Competition Act for a period of three years for acquisitions of assets of an investee company.