Government to break Globe-PLDT ‘domination’ of telco industry

The government plans to bid out new ra­dio frequencies to firms that will challenge the domination of Philippine Long Distance Telephone Co. Inc. (PLDT) and Globe Tele­com in the telecommunications industry, the National Telecommunications Commission (NTC) said.

The NTC said it plans to bid out unas­signed frequencies by the middle of next year to pave the way for the entry of a third player in the telecommunications industry.

NTC Commissioner Gamaliel Cordoba said that several telecommunications firms have expressed their interest in acquiring the radio frequencies that are necessary to pro­vide wider internet access to the public.

“There is a strong demand for the emer­gence of a third player in the telco industry,” Cordoba said on the sidelines of the first In­formation and Communications Technology (ICT) summit.

Among the mobile communications firms that are willing to participate in the bidding are Now Telecom and Converge ICT Solutions Inc., Cordoba said.

The NTC will auction the radio spectrum in one bundle and will discuss the terms of reference with the Department of Information and Communications Technology (DICT), he said.

NTC Deputy Commissioner Edgardo Cabarios had said telecommunications com­panies must have an investment worth at least P30 billion for the rollout of the mobile communications infra­structure for them to catch up with PLDT and Globe.

Earlier, the forming of a strong third player, San Miguel Corp., was aborted when SMC backed out from challenging the duopoly of PLDT and Globe af­ter its $1-billion joint venture with Telstra Corp. of Australia did not push through.

Instead of challenging the duopoly, SMC sold its telecom assets to PLDT and Globe for P70 billion.

An Internet rights advocacy group had asked the anti-trust body Philippine Competition Commission (PCC) to review the telecommunications mega­deal and provide guidelines that would reallocate radio frequen­cies to allow the entry of new competitors in the industry.

Democracy.Net.PH ex­plained that an open competition in the telecoms industry would provide consumers more options for faster and affordable Internet access.

Engineer Pierre Tito Galla, co-founder and co-convenor of Democracy.Net.PH, said the ex­isting telecoms industry is domi­nated by PLDT/Smart and Globe Telecom, which control radio-fre­quency waves or spectrums that are crucial in the operation of mobile internet services in the country.

The group said that with the acquisition deal by Globe and Smart of the 700MHZ fre­quency band of SMC, they al­ready own nearly 80 percent of the total available spectrum, according to the National Ra­dio Frequency Allocation Table (RFAT).

The remaining 20 percent of spectrum cannot be allocat­ed, as some of them are con­sidered guard bands to prevent interference of radio signals.

“With the existing spec­trum available for allocation, there is not enough spectrum to be attractive for the entry of just one potential new player,” according to Galla.

The PCC is reviewing the PLDT/Smart-Globe-SMC deal and the PLDT/Smart-Globe spectrum co-use agreement, as there is not enough spectrum that would allow the entry of a new competitor.

Democracy.Net.PH reit­erated that the government should allow the consumers to use the spectrum for the public good. Re-allocation of spec­trum should have guidelines to ensure that no potential new competitor is blocked from en­try, especially when there is little or enough available spectrum to be had.

“Competition is a neces­sary driver to ensure the objec­tive of making Philippines tele­communications faster, more reliable, cheaper, and more accessible across the country. Healthy competition in a level playing field can only be en­sured by the active oversight of the appropriate branches and agencies of the government,” the group said. LUIS LEONCIO