DICT gearing up for resistance to frequency redistribution
By Patrizia Paola C. Marcelo,
Reporter
THE Department of Information and Communications Technology (DICT) said it is studying ways to make the allocation of telecommunications spectrum “more equitable,” and may resort to redistribution.
DICT officer-in-charge and Undersecretary Eliseo M. Rio, Jr. said that the agency will study best practices worldwide for allocating frequencies, the bulk of which are currently controlled by incumbents PLDT, Inc. and Globe Telecom, Inc.
“We will come up with a more equitable allocation of frequencies, based on best practices of other countries like refarming and will be the subject of public hearings before being finalized,” Mr. Rio said in a text message.
PLDT and Globe added to their advantage last year by acquiring the telco assets of San Miguel Corp. (SMC).
The acquisitions include rights to the coveted 700 megahertz (MHz) frequency band.
The Philippine Competition Commission (PCC) estimates that only 12.8% of the spectrum will be available for a potential third player.
Refarming may open the government to legal action and Mr. Rio said the government needs to plan for the long term in the event the incumbents resist refarming.
The DICT is looking at allocating the remaining uncommitted frequencies to a third player, which could possibly be structured as a consortium.
Mr. Rio told reporters last week that the DICT does not favor distributing the remaining frequencies to many players, which might lead to buyouts by PLDT and Globe.
Mr. Rio said in a social media post last week that no matter how “financially and technically robust” the third player may be, the frequencies available may not leave the third player in a position to compete.
Possible areas in which the third player can compete include building cellphone towers for lease to other companies including the incumbents, and fixed-line Internet service to underserved areas.
Malacañang has said that China Telecom Corp. Ltd. has been nominated by the Chinese government to invest in the Philippines. It has yet to choose a local partner, as the law provides for only 40% maximum foreign ownership in telecommunications.
Philippine Telegraph and Telephone Corp. (PT&T) is set to roll out a nationwide broadband network, as well as mobile service, in the next few years, which is seen as a bid to position itself as a local partner for the third player.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.
