COMPANIES vying to be the “third player” can consider using National Transmission Corp.’s (TransCo) fiber network to reduce costs in building network infrastructure, the acting head of the Department of Information and Communications Technology (DICT) said.

DICT Acting Secretary Eliseo M. Rio, Jr. said that the signing of a memorandum of understanding (MoU) between the Philippine Telegraph and Telephone Corp. (PT&T) with the state-owned TransCo for the use of its so-called “dark” or unused fiber sets a precedent which interested parties can follow.

“There’s already a precedent. The companies can talk with TransCo, as that can be cheaper rather than building infrastructure,” Mr. Rio said in a phone interview.

PT&T last week announced that it entered into an agreement with the National Transmission Corp. that would allow the telco to use the government’s national fiber optic backbone facility.

Under the MoU, PT&T and TransCo will create a technical working group (TWG) for the preparation for the eventual use of dark fiber in the country’s network of transmission lines. Dark fiber is defined as unused network infrastructure composed of cabling, switches and repeaters.

PT&T said that utilizing the dark fiber in the grid will allow them to have a true national backbone “that can rival” that of incumbents PLDT, Inc. and Globe Telecom, Inc.

Mr. Rio however clarified that the DICT will not be facilitating any talks between third player candidates and TransCo.

“We leave it up to them, whatever commercial agreement they have. It’s outside our functions,” he said.

He added that agreements are possible as so far, privately held National Grid Corp. of the Philippines (NGCP) has not expressed any opposition to the agreement between PT&T and TransCo.

TransCo and NGCP disagree over what TransCo says is the NGCP’s allowing of third parties to use government property without authority. This includes NGCP’s authorization of PLDT, Inc.’s and Globe Telecom, Inc.’s access to the power grid operator facilities.

The DICT is moving towards requiring potential entrants to offer wide coverage and fast Internet connections, rather than its previous preference for candidates with the highest committed financial investment and a net worth of P10 billion. It is set to release another draft of selection criteria.

With a move to more technical requirements, companies, particularly local telcos, which have existing infrastructure may have an advantage.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

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