Mobile telco giant Globe Telecom on Thursday questioned the regulators’ plan to exclude qualified 3G (third-generation) communications firms from participating in the auction of the fifth remaining 3G frequency spectrum.
It would seem that the National Telecommunications Commission (NTC), according to Globe, is favoring the entry of new players by blocking off current 3G frequency holders from the spectrum assignment process.
The frequency band 1965 to 1975 megahertz (MHz), 2155 to 2165 MHz or 1890 to 1900MHz/1970 to 1980MHz have been made available by the regulators for assignment. The NTC wants to bar existing 3G frequency holders and their affiliates from applying for the last license.
Globe, according to regulatory affairs head Froilan Castelo, opposes this, saying the cellular firm cannot be lawfully disqualified from applying for the remaining frequency band. “How can the best-qualified be disqualified?” asked the Globe lawyer.
The NTC conducted a public hearing in January for this purpose. In that hearing, it was stated that the proposed rules for bidding out the remaining 3G frequency are a continuation of the 2005 circular issued for the same purpose. Only four frequency slots were awarded.
Castelo opined that if the NTC considers the proposed rules as a continuation of its 2005 promulgation—where four out of the nine firms were deemed qualified to apply for 3G frequencies—then only the same four qualifiers should be allowed to join the auction.
But since Connectivity Unlimited Resource Enterprise Inc. (Cure) was acquired by Smart Communications Inc. last year, there remain only three possible assig-nees—Globe, Smart and Digitel Mobile Philippines Inc. “As a continuation of the 3G spectrum assignment memorandum circular of 2005, the five applicants disqualified then are still disqualified now. Since Globe, Smart and Digitel are existing 3G spectrum assignees, now disqualified under the draft rules, it would appear that the entire telecommunications industry at large is effectively restricted from gaining access to the remaining 3G spectrum and from utilizing the same for public service,” said Castelo.
Globe added that the consequence of the so-called continuation is the disqualification of existing telcos, “presumably in favor of a new player or two.”
Express Telecom, which did not apply a 3G license in the previous occasion, is now actively pursuing a comeback, openly declaring its intention to be a 3G player.
Not surprisingly, Express Telecom favored the NTC draft rules and even told the commission that it wants previously disqualified 3G applicants—Bayan Telecommunications Inc., AZ Communications, Multimedia Telephony Inc., Pacific Wireless and Next Mobile Inc.—to be excluded from the new frequency assignment process.
Globe said that even if new applicants will still be entertained, they will be hard-pressed to use the cellular spectrum. Globe cited the case of Cure, which never sustained viable operations since its 3G spectrum assignment in January 2006. “Cure was eventually acquired by Smart last year, alleviating its pressure to cope with commercial dues. On the side, it is alarming to note that the said acquisition resulted in an unfairly disproportionate allocation of 3G frequencies among incumbents—25Mhz for Smart and only 10Mhz each for Globe and Digitel,” said Castelo.
The cellular firm said there are other ways of fostering a competitive environment other than adding new players to an already fiercely competitive industry. Globe urged the NTC to keep the remaining 3G radio frequencies within grasp of companies which have truly proven their ability to make the best use of the scarce resource.
“Hence, there should be no outright disqualification of existing 3G spectrum assignees; rather, a qualification process evolved from the one employed in 2005 to cull out the best qualified ought to be applied on the very same current assignees. The most sensible track for the assignment of the remaining 3G frequencies is to allow the qualified parties to face off-ideally in a beauty contest, but in open tender if necessary should demand exceed supply,” said Castelo.
Globe said it has invested over $250 million into 3G mobile and broadband technologies and services since 2006. As of October 2008, Globe has more than 1,800 3G cellsites, extending its 3G footprint across 66 of the 79 provinces.
It had applied for additional 3G spectrum twice last year. On March 5, it requested the NTC to be assigned the 825-845/870-890 MHz band to expedite 3G service deployment in rural areas. On May 16, Globe applied for the same 3G frequencies that are the subject of the current draft circular in order to increase capacity for higher 3G HSDPA (high-speed data packet access) transmission rates.
No comments:
Post a Comment