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Five ‘bubbles,’ 400,000 fans and full prize money at 2021 Australian Open

MUMBAI — The 2021 Australian Open could be moved to later in the year due to COVID-19 but tournament director Craig Tiley told Reuters that organizers are confident of hosting the Grand Slam in its usual January slot with full prize money and fans in the stands.

Melbourne is in the midst of a full lockdown after a second spike in COVID-19 cases but Tiley and his team have been working since shortly after the 2020 edition finished to draw up strategies to ensure next year’s tournament goes ahead.

Ticket sales will start in October and five “bio-secure bubbles” will be opened across the country six weeks before the tournament begins to allow players arriving in Australia to avoid the most restrictive quarantine measures, Tiley said.

“We’re going to open our bio bubble from the first of December and players can come at any time,” Tennis Australia’s (TA) chief executive added in a video call.

“When the players arrive, our expectation is they’re not going to be in a hotel for 14 days like the current requirements are. We’ll have an exemption within this bio-secure bubble.

“We’ve said every year that we’re the ‘happy slam’. But now we’re saying we’re the ‘very safe and happy slam.’”

TA’s crisis management team, set up because of the bushfire smoke that threatened this year’s tournament, has put a business and operational plan in place for each of the scenarios they came up with.

The first scenario was the event being held in much the same way as 2020, while the second was a tournament with limited crowds, said Tiley.

“Scenario three was behind closed doors, a broadcast-only event. Scenario four was moving to another time of the year,” he added.

“And scenario five is no event at all.”

‘THE WAY WE WERE’
Tiley was confident of being able to welcome some 400,000 fans to Melbourne Park in 2021, about half the number that attended this year’s tournament.

The vast site, which covers an area of about 2.5 kilometers, allows organizers to enforce physical distancing effectively, while the wearing of masks will be mandatory.

“We’ve established a strategy and an operational plan for all our fans and how they will be positioned around the site,” he said.

Tiley said they would consult with the main tours if they were forced to reschedule, not act unilaterally as the organizers of the French Open did when they moved their event from May to the end of September.

The Australian winter would rule out the months of May to July as prospective windows but March-April or September-October could be looked at, he added.

Tiley said organizers had employed a “global expert” to help set up the bio-security bubbles and testing facilities in Perth, Brisbane, Sydney, Adelaide and Melbourne, which will allow players to acclimatize and train for the Grand Slam.

The Australian Open, which has been held in Melbourne since 1972, is the primary source of revenue for TA and the last edition had a direct economic impact of A$387 million ($277 million) on Melbourne, Tiley said.

TA expects turnover and revenue from the next edition to decrease by a double-digit percentage but they would not be reducing the A$71 million prize purse.

“I’m optimistic and positive that we’ll have an event and it’ll be in Melbourne,” said Tiley, adding that TA had cash reserves of A$80 million to lean on in the event the tournament had to be cancelled.

“It will have some crowds and it’ll be the beginning of kind of getting back to the way we were.” — Reuters

Hardware up for grabs

The National Basketball Association cannot but be happy with how its bubble experiment has progressed so far. For the fourth consecutive week, its mass testing of players has resulted in zero positive results — proof, if nothing else, of the effectiveness of the stringent health and safety protocols it has put in place at the ESPN Wide World of Sports Complex in Orlando, Florida. And while broadcast ratings haven’t exactly been the bonanza conventional wisdom envisioned in light of the seeming absence of entertainment options under the new normal, they nonetheless underscore the continued appeal of the league’s principal product.

Indeed, matches over the last month have been significantly compelling. Even as the initial schedule was designed to enhance the fitness of players after having been subjected to a lengthy break, competition has been fierce. The battle for the last playoff spot in the West has, in particular, come down to the last day of the seeding games. The Grizzlies, Blazers, Spurs, and Suns all have at least partial control of their fates, underscoring the importance of every contest in today’s slate.

Parenthetically, the developments have both been a result of and led to outstanding showings from supposed fodder. The Suns, for instance, have exceeded themselves, racking up seven straight victories; one more win, and they cement their singular unbeaten status. The Spurs have likewise surprised longtime hoops habitues with consistently gritty efforts despite the absence of seven-time All-Star LaMarcus Aldridge. And the Blazers, starring prospective bubble Most Valuable Player Damian Lillard, have overcome intrinsic frailties with a heady mixture of purpose, perseverance, and pride.

All of the above translate to a turn of events the NBA will be presenting with pleasure this weekend. When the runup to the playoffs was being drawn up, the play-in series looked more like a possibility at best. Now that it has become a certainty, it figures to be a can’t-miss proposition regardless of the protagonists involved. The unique mechanics will require the ninth seed to prevail against the eighth seed twice, and the latter just once over the former, in order to claim the last postseason spot in the West.  And, make no mistake, it’s not simply a right to face the Lakers in the first round. Because there is effectively no such thing as homecourt advantage on campus, registering an “upset” against the conference top seed isn’t as Sisyphean an endeavor as it looks on paper.

In other words, motivations run high because the Grizzlies, Blazers, Spurs, and Suns know winning today won’t just mean staying alive. As far as they’re concerned, the hardware is up for grabs — and darned if they won’t make the most of the opportunity.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Science and art merge in educational TV program

By Patricia B. Mirasol

Mind S-Cool TV is an alternative learning experience that complements basic education by merging art and science through “adventure quests” featuring show-and-tell activities, exhibitions, home experiments, and illustrations, among others. 

Mind S-Cool TV is a project of the Bonifacio Arts Foundation Inc. (BAFI), the nonprofit behind the Mind Museum and BGC Art Center. “Education should continue in the crisis. We’d like to think we’re learning for a better normal,” said BAFI managing director and curator Maria Isabel Garcia, who added that the show was planned soon after the lockdown, when she and her colleagues realized that the crisis was likely to linger.

A media preview of the TV show revolved around the question: “What is a pandemic?” In a combination of English and Filipino, co-hosts Mikee Estorga and Pecier Desierdo took the audience on a student-friendly journey on the causes, management, and prevention of a pandemic. 

Questions from children were answered by virologist Marilen Balolong. There were also insights from Ron Capinding, a writer, and Chris Carandang, a clinical psychologist. Interwoven in between was a conversation with an animated bat, informative videos, and a song number, reminiscent of educational shows like Sesame Street.

Teachers who previewed the quest found it an informative supplement to their lessons. “It’s well-intentioned and a very good concept,” said one.

Succeeding quests include “How Do You Make a Planet?” and “What Is Everything Made Of?” Topics are tied to the K-12 curriculum. The approach aims to make connections to the real world and teach children how to ask questions. 

Mind S-Cool TV will be aired weekly on free TV on CNN Philippines and live-streamed on its Facebook page beginning Aug. 22, at 8:30 a.m. with a replay at 4:30 p.m. (replay schedules may change). As a nod to the pandemic, the pilot episode is titled “What in the World Is Going On?” 

There’s also a subscription-based platform called Mind S-Cool Online which is a deep dive on topics with worksheets. It will be available at the same time as Mind S-Cool TV.

“Science will solve this crisis. The arts will make the way inspiring and transformative,” said Ms. Garcia.

Digitized education levels the playing field for students with special needs — edtech experts

By Mariel Alison L. Aguinaldo

Digitized education levels the playing field for students with special needs, said Shaina Tantuico, co-founder and executive director of TinyLabs, a virtual class platform for children up to seven years old. 

In a recent webinar on education, Ms. Tantuico shared that a hard-of-hearing student had an easier time understanding her online lessons because her hearing aid was better able to pick up her teacher’s voice over the computer. “Teachers are able to teach to the whole class as if they’re all at the front row, and not at the back of the classroom,” said Ms. Tantuico.

Furthermore, multiple teaching assistants can handle smaller groups, allowing them to customize their lesson plans. “If you have fifty students, you can’t do fifty different learning styles; you only have one professor,” said Aurélien Chu, co-founder and chief operating officer of Eskwelabs, a blended learning artificial intelligence and data science training academy for adults.

To motivate students, Unifinity, a virtual academy, set up a reward system based on cryptocurrency. Coins are loaded in students’ digital wallets and can be used for actual transactions.  “We are rewarding the students based on their proof of activity, proof of attendance, and proof of performance by distributing their scores into a transparent distributed ledger technology,” said Veronica Andrino, Unifinity founder and chief executive officer.

With President Rodrigo R. Duterte mandating the physical closure of schools until a vaccine is found, the Department of Education (DepEd) had to find a solution that would accommodate students of varying socioeconomic backgrounds.

DepEd came up with two options for distance learning: modular distance learning, which provides printed or digital self-learning modules for students who either have no devices or no Internet access; and online distance learning, wherein a teacher facilitates a virtual class in real-time, for students who have reliable Internet connections.

However, slow digital adoption poses a challenge for both students and teachers. “They may have laptops and computers, but prior to COVID-19, these gadgets were for encoding and social media purposes only,” said Antonio E. Etrata, Jr., a faculty member of the University of Sto. Tomas. While his institution has had a learning management system for 20 years, Mr. Etrata admitted that, pre-pandemic, he would only use it for making announcements.

“We can never tell something will not work unless we will try. This is my assurance, and I think, this is our commitment to our students,” he said.

The education webinar was part of a series of breakout sessions held during the Impact Hackathon, a virtual event that aims to create sustainable digital solutions.

Half of Filipino small business owners use social media as their main channel of communication

By Mariel Alison L. Aguinaldo

Sixty percent of small business owners in the Philippines are relying on technology to keep their ventures afloat during the pandemic, according to the GoDaddy 2020 Global Entrepreneurship Survey, with 51% using social media and messaging apps as their main channel of communication. 

The survey conducted in June by GoDaddy, an Internet domain registrar and web-hosting company, also found that 43% percent of Filipino business owners are looking into creating a website, while 38% are considering getting into the e-commerce space.

To compete in the digital space, a business must have both social media presence and a website, said Tina Shieh, marketing director for GoDaddy Asia.

COVID-19 has negatively impacted many small businesses, with 81% reporting a decrease in their revenues. Nearly half said that they had to close their businesses temporarily.

However, 76% are optimistic that they can recover within a year; 92% expect to grow their business in three to five years.

The pandemic also presented opportunities for some respondents, with one out of three starting a business at this time. The Department of Trade and Industry previously reported that 33,559 and 17,351 business names were registered in June and July respectively, a huge increase from the 418 tallied in March.

Despite the challenges that they faced during this time, 72% said that it’s important they’re able to have a positive impact in their communities. This is the highest percentage among all of the countries that were surveyed. Thirty percent used their business to make donations or perform other acts of charity.

The GoDaddy 2020 Global Entrepreneurship Survey was conducted in 10 countries, namely the Philippines, Australia, Canada, Germany, India, Mexico, Spain, Turkey, the United Kingdom, and the United States. Of the 5,265 entrepreneurs interviewed, 93% said they had 10 or fewer employees. In the Philippines, 70% were aged 24 to 39.

China says frozen chicken wings from Brazil test positive for virus

Consumers should be cautious when buying imported frozen foods and aquatic products, said Chinese government officials. Image via ProjectManhattan / CC BY-SA

Consumers in the Chinese city of Shenzhen have been urged to exercise caution when buying imported frozen food after a surface sample of chicken wings from Brazil tested positive for coronavirus, according to a statement from the local government.

The positive sample appears to have been taken from the surface of the meat, while previously reported positive cases from other Chinese cities have been from the surface of packaging on imported frozen seafood.

The chicken came from an Aurora Alimentos plant in the southern state of Santa Catarina, according to a registration number given in the statement.

Virus tests of people who have possibly come into contact with the product, and tests of related products, all came back negative, the statement said. Consumers should be cautious when buying imported frozen foods and aquatic products, the government added.

Three packaging samples of imported frozen seafood tested positive for COVID-19 in Yantai, a northern city of China’s Shandong province, the city government said on its official Weibo account on Tuesday. State television on Wednesday reported that the outside of an Ecuador frozen shrimp package tested positive for the virus in a restaurant in Wuhu, a city in China’s Anhui province. — Bloomberg

 

Delay routine dental checkups in areas of COVID spread — WHO

GENEVA — Dental patients and staff need to be protected from any potential infection by aerosol-generating procedures, the World Health Organization (WHO) said on Tuesday, as dentists return to work in areas where the COVID-19 pandemic is easing.

There is currently no data on the spread of coronavirus from the dentist’s chair, it said, calling for more research into common procedures that produce tiny floating particles that may cause infection if inhaled.

These include three-way air/water spray, ultrasonic cleaning equipment that removes deposits from the tooth surface, and polishing, the WHO said in new guidance.

“WHO guidance recommends in case of community transmission to give priority to urgent or emergency oral cases, to avoid or minimize procedures that may generate aerosol, prioritize a set of clinical interventions that are performed using an instrument and of course to delay routine non-essential oral health care,” Benoit Varenne, a WHO dental officer, told a news briefing.

He added: “The likelihood of COVID-19 being transmitted through aerosol, micro-particles or airborne particles… today I think is unknown, it’s open to question at least. This means that more research is needed.”

The WHO last month released general guidelines on the transmission of the coronavirus which acknowledged some reports of airborne transmission, but stopped short of confirming that the virus spreads through the air.

Dental facilities must have adequate ventilation to reduce the risk of the virus spreading in closed settings, it said on Tuesday.

“We think that the most pressing issue is related to the availability of essential personal protective equipment, PPE, for all health care personnel undertaking or assisting in the clinical procedures,” Mr. Varenne said. — Reuters

Pilipinas Shell permanently shuts refinery to convert into import terminal

Pilipinas Shell Petroleum Corp. is permanently closing its Tabangao refinery and converting it into a full import terminal. 

The listed fuel company on Thursday said it decided to close the 110,000-barrel-per-day refinery in Batangas as the slump in regional refining margins worsened due to the global coronavirus pandemic. 

“It is no longer economically viable for us to run the refinery. It is with a heavy heart that we announce the cessation of oil refining activities in Tabangao,” Pilipinas Shell President and Chief Executive Officer Cesar G. Romero said. 

The facility will be converted into an import terminal, “one that will sustain and grow Pilipinas Shell’s competitive advantages,” the company’s official added, noting that the supply shift to import-based won’t affect the company’s capability to deliver fuel needs. 

The refinery suspended operations on May 24 to cushion the company from declining refining margins and aid in cash preservation. 

“It is unfortunate that [Pilipinas Shell] had to permanently close its refinery operations in the country,” Energy Secretary Alfonso G. Cusi said in a statement. 

The Energy chief expressed his concern for refinery workers who will be displaced because of the closure. “I hope they will find employment with the other industry players,” Mr. Cusi said. 

Pilipinas Shell said it would look out for its employees. “We will be guided by our core values of honesty, integrity and respect for people in safeguarding their well-being, addressing their needs sensitively and preparing them for their next journey ahead,” Mr. Romero said. 

In the first six months of 2020, Pilipinas Shell shed P6.7 billion as demand for fuel products plummeted by as much as 70%, which the DoE recorded in April.

 The upcoming import terminal will supply the fuel needs of Luzon and northern Visayas. 

“Shell remains committed to the Philippines and will pursue opportunities where we can leverage our global expertise in line with our growth strategy,” Mr. Romero said. 

Shares in Pilipinas Shell were trading lower by 5.03% to P16.62 apiece after the company made the announcement on Thursday.

Manila malls may become e-commerce storage amid retail slump

Property developers in the Philippines are considering novel alternative uses for shopping malls as people stay home and prefer to buy things online.

SM Prime Holdings Inc., the nation’s biggest landlord, is leasing out some of its parking lots for longer-term car storage, while a unit of Ayala Land Inc. plans to convert areas in its shopping centers to e-commerce backend facilities and medical clinics.

Southeast Asia’s worst coronavirus outbreak has made Filipinos fearful of going about their daily business and they’re seeking to avoid high-traffic spots. That’s putting extra pressure on retail landlords already weathering slump in demand and a recession.

SHOPPERS’ PARADISE
The Philippines is home to some of Asia’s biggest malls; capital Manila and surrounds boast total retail space of 7.3 million square meters, according to Joey Bondoc, a research manager at Colliers International Group Inc. That’s more than twice the size of New York’s Central Park.

Retail vacancy rates in Manila are forecast to climb to 12% this year while rents will drop for the first time since the global financial crisis, forcing shopping centers to either “innovate or evaporate,” Mr. Bondoc said.

AyalaLand Logistics Holdings Corp. is studying turning parts of its malls into last-mile fulfillment facilities, according to a document seen by Bloomberg.

“We continue to explore opportunities,” said Francis Montojo, the unit’s chief finance officer. He added that other commercial areas may be converted to healthcare clinics or office space.

SM Prime, meanwhile, has leased out a floor in the car park of a shopping mall to a bank, as well as leased another floor in an office tower, President Jeffrey Lim said in a text message.

“Retail developers must look at possible areas to pivot and re-purpose space,” said Kash Salvador, an associate director at property services company Santos Knight Frank. “We see an opportunity in storage and warehousing given higher logistics demand as shoppers go online.”

Mall owners should also consider leasing vacant space to co-working companies as businesses seek smaller offices in various locations, Colliers’ Mr. Bondoc said. — Bloomberg

Regional Updates (08/12/20)

Over 1,200 apprehended in QC for violating health protocols

MORE THAN 1,200 people were rounded up in Quezon City on Wednesday for violations of health safety measures such as wearing of face mask and observing social distancing. The city government’s Department of Public Order and Safety said the violators, which also included those who were out without a quarantine pass, consisted of 997 men, 213 women and 28 minors. “Dumadami ang mga COVID-19 cases kaya kailangan hulihin ang mga violators (Cases of the coronavirus disease 2019 has been increasing so we should apprehend violators),” department head Elmo San Diego said in a phone interview. Quezon City has recorded over 7,800 COVID-19 cases. The violators underwent booking procedures and were fined ranging from P300 to P500. Lawmen also gave them a lecture on the dangers of COVID-19. Mr. San Diego also said as part of the violators’ punishment, they were not provided with transportation to return home. — Emmanuel Tupas/PHILSTAR

DoTr to absorb qualified workers affected by LRMC’s retrenchment

TRANSPORTATION SECRETARY Arthur P. Tugade on Wednesday instructed the railway agencies under his department to hire the “qualified” workers who will be laid off by Light Rail Manila Corporation (LRMC), the private operator of LRT-1. “Hire qualified personnel to our rail lines and projects… We must look into the possibility of absorbing them as quickly as we can. Huwag natin silang pabayaan (Let us not forsake them). It’s the least and most humane thing we can do for them at this time,” Mr. Tugade said in a statement. On Tuesday, LRMC announced it would let go of over 100 employees, citing a significant drop in ridership amid the coronavirus crisis. The workforce reduction takes effect Sept. 15. The company said all affected employees will receive separation benefits as well as training on alternative livelihood and investment along with mental health support. LRMC is the consortium composed of Ayala Corp., Metro Pacific Light Rail Corp., and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. Metro Pacific Rail is a unit of Metro Pacific Investments Corp., one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Arjay L. Balinbin

Davao local governments keep watch on swine flu threat

LOCAL GOVERNMENTS in Davao Region are intensifying efforts to avoid African Swine Fever (ASF) following last month’s outbreak in a cluster of hog raisers in Panabo City, Davao del Norte. The neighboring province of Davao de Oro has set up quarantine measures at its borders, including foot and wheel baths. “Since February when ASF erupted in Davao Occidental, we are very vigilant together with our hog raisers here in Davao de Oro. We conducted a meeting on how to combat this virus and one of the things discussed to address this is of course prohibiting the use of swill feeding and also in our provincial boundaries, all vehicles entering in our province need to pass through a foot bath and a wheel bath,” Governor Jayvee Tyron Uy said in a briefing aired over Radyo Pilipinas. The Davao City government on Tuesday also called on consumers to check for certification when buying both fresh and processed pork products. The City Veterinarian’s Office found ASF virus in samples of chorizo, tocino, and lumpiang shanghai taken from the Bankerohan Public Market on July 30 and Aug. 5. Assistant City Veterinarian Ester G. Rayos said buyers must ensure that the merchant has a meat inspection certificate (MIC). “If they have an MIC, it means the meat were inspected in our accredited slaughterhouses,” she said in an interview on Tuesday. The outbreak in Panabo City, which was confirmed July 22, has been contained through a lockdown of the entire village of Cagangohan and culling all pigs in the community. — Maya M. Padillo

Banks’ soured loans climb in June

By Luz Wendy T. Noble, Reporter

LOCAL BANKS saw soured loans rise by a fourth as of end-June, reflecting the economic impact of the coronavirus pandemic, data from the central bank showed.

According to preliminary data from the Bangko Sentral ng Pilipinas (BSP), gross nonperforming loans (NPLs) jumped by 26.7% to P273.6 billion in June from the P215.9 billion in the same month a year ago. This is against the industry’s total loan book that slipped 1.27% to P10.82 trillion in June from the P10.96 trillion in June 2019.

NPLs are loans left unsettled at least 30 days past due date. These are seen as risky assets as there is little chance of borrowers settling their outstanding balances, which would mean losses for the lender.

The gross NPL ratio as of end-June stood at 2.53%, inching up from 2.43% in May and the 2.1% seen a year ago.

The quality of the banking industry’s portfolio is anticipated to deteriorate amid the ongoing pandemic crisis, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said.

“Based on BSP’s engagement with the banks, the NPL ratio of the banking system is estimated to increase to around 4.6% by end-December 2020,” Ms. Fonacier said in a text message to BusinessWorld.

“Banks are also expecting an uptick in NPLs by yearend as borrowers’ capacity to pay have been weakened by disruptions in their cash flows,” she added.

BSP data showed restructured loans stood at P48.47 billion in June, up P30.38 million from May and 25.7% higher than the P38.56 billion in the same month in 2019. With this, the ratio of restructured loans to the industry’s total loan book was at 0.45% for the second straight month and slightly higher than the 0.37% seen in June 2019.

Meanwhile, past due loans in June declined 33.4% to P375.27 billion from the P563.7 billion in May but rose 26% from the P296.89 billion a year ago. The industry’s past due loan ratio in June was at 3.47%, going down from the 5.22% in May but inching up from the 2.89% in the same month of 2019.

Amid the deteriorating quality of loan portfolios, the banking industry boosted its provisions for credit losses by 48.5% year on year to P300.3 billion in June.

Banks’ NPL coverage ratio, which measures their allowance for potential losses due to soured loans, was at 109.7% in June, up from 97.31% the prior month and the 93.29% seen in the same month a year ago.

Meanwhile, capital adequacy ratio was at 12.73% in June, versus 12.76% in June 2019 and the 12.66% in the prior month. The June level is well beyond the 10% minimum required by the central bank.

BSP officials have said they do not expect the current crisis to increase banks’ bad loan ratio to the levels seen in previous crises. The local industry’s NPL ratio peaked at 17.6% in 2002 in the aftermath of the Asian financial crisis.

Analysts expect NPLs to rise, but said lenders continue to have healthy buffers to guard against the impact of the pandemic.

“Banks continue to have healthy metrics and formidable buffers to weather the crisis,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

For his part, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said banks’ heightened credit loss provisions will help safeguard their standing.

“These were meant to cushion the banking industry precisely from souring loans because of the economic impact brought about by the coronavirus pandemic,” he said in an e-mail.

Mr. Mapa said while he expects the industry to remain strong, a protracted progression of the crisis could pose a threat to banks’ solid footing.

“Eventually, if unemployment surges and GDP (gross domestic product) remains in contraction, even the formidable banks will come under pressure,” Mr. Mapa said.

The economy is officially under technical recession as GDP in the first two quarters contracted by 0.7% and 16.5%, respectively. The government is expecting full-year GDP to shrink by 5.5%.

ARTA orders 11 LGUs to release pending telco tower permits

By Jenina P. Ibañez, Reporter
and Arjay L. Balinbin, Senior Reporter

THE Anti-Red Tape Authority (ARTA) ordered local governments to release pending permits for telecommunications towers, applying the rules of the Ease of Doing Business law to remove bottlenecks in the tower permit process.

The first batch of compliance orders were sent to 11 local government units (LGU), including Puerto Princesa, Masbate, and Kalibo, after telecommunication and tower companies sent their list of pending applications with complete requirements, ARTA said in a press release on Tuesday.

Applications that have exceeded seven days from completion will be declared automatically approved.

The seven-day deadline complies with the law’s time limit for “complex transactions.” The law requires government agencies to observe three types of deadline: Three working days for simple transactions, seven working days for complex transactions, and 20 working days for highly technical applications.

ARTA said that Smart Communications, Inc. is continuing to verify more applications, while Globe Telecom Inc. has yet to submit its list.

The LGUs will be ordered to submit a compliance report three days after they receive the order.

The report should include a list of all approved and pending applications, as well as those requiring approval from the local government’s Sanggunian. The report should also include an explanation on why permits are still pending.

The first batch of compliance orders were sent to Puerto Princesa City and Rizal in Palawan, Miag-ao, Cabatuan, Estancia, and Leon in Iloilo, Kalibo in Aklan, Masbate City, Bulan in Sorsogon, Canaman in Camarines Sur, and San Jose in Occidental Mindoro.

“There is no more choice for the (LGUs) or (National Government agencies) but to issue the appropriate permits because it was already approved by Congress itself. Refusal to follow this very clear provision of the law will lead to (administrative) and criminal cases to be filed. Kaya sumunod po tayong lahat!,” ARTA Director-General Jeremiah B. Belgica said.

Interior Secretary Eduardo M. Año said that 428 applications for cell tower permits are still pending with LGUs this year, while 1,502 have been approved.

The Office of the Mayor at Kalibo, Aklan said it would facilitate the applications of the telecommunications companies.

“We also need these telcos, so as far as I know, the mayor has no opposition as far as the operation here. The local government here wouldn’t stand in the way of it,” Basil Tabernilla, executive assistant to Kalibo Mayor Emerson S. Lachica, said in a telephone interview.

“The mayor wouldn’t stand in the way (of the automatic approval)… For as long as it is above board, for as long as there is no violation of local and national laws, the mayor would always agree to that.”

ARTA derives its authority from Republic Act 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

A joint task force including ARTA, the Department of Interior and Local Government, and the Department of Information and Communications Technology is being formed to carry out administrative and criminal prosecutions against officials obstructing permits.

Nine government agencies in July signed a memorandum circular fast-tracking permit approval for the building of shared telecommunications towers by reducing the required number of permits.

President Rodrigo R. Duterte in his recent State of the Nation Address threatened to shut down telecommunication companies if they fail to improve their service by December. A subsequent meeting with industry officials identified local governments as the bottleneck.

FOREIGN FIRMS RAISE CONCERNS
Meanwhile, Information and Communications Technology Undersecretary Ramon P. Jacinto renewed his push to limit the number of firms allowed to build common towers, saying that foreign companies raised concerns about the policy guidelines that allow existing telecommunications companies to build towers.

“May questions pa rin d’yan ang malalaking investors. Kasi ang marunong lang ng common tower ay mga foreigner. May experience sila. Wala pa tayong common tower company dito na may experience (The big investors have questions. Foreign companies know how to build common towers. They have the experience. We don’t have companies with that experience),” he said at a virtual forum on Wednesday, referring to the Department Circular No. 8 signed by Secretary Gregorio B. Honasan II on May 29.

Mr. Jacinto said some foreign tower builders submitted a letter to Mr. Honasan expressing concerns over the guidelines.

“They wanted the guidelines improved, the interim guidelines,” he said, adding that IHS, a South African firm, had already backed out.

Mr. Jacinto said there are still “about five substantial tower companies” that are interested, but may also back out if concerns are not addressed.

He said the existing common tower guidelines should be improved immediately. The task to build the common towers should be given to “experienced big companies” in the first four years of the implementation, he said.

To recall, Mr. Jacinto proposed to limit the number of common tower companies to two.

Under the guidelines signed by Mr. Honasan, mobile network operators or telcos may build new telecommunication towers, but they should “provide ample access slots” for other players and the DICT to “co-locate, mount or install their respective antennas, transmitters, receivers, radio frequency modules, radio-communications systems, and other similar active ICT equipment.”

Tower companies should have relevant construction experience, registration, license, and financial capacity, equivalent to a category A contractor or higher of the Philippine Contractors Accreditation Board.

PLDT Public Affairs Head and Spokesperson Ramon R. Isberto expressed support for the government’s initiative to roll out common towers to improve the country’s connectivity.

“We recognize it is a common practice all over the world, and we are receptive and supportive of that policy as well. That is why we’ve already signed agreements with six tower companies, and we have an initial target rollout of about 180 to 200 cell sites,” he said.

Mr. Isberto said the company is eyeing more agreements with other tower companies.

DICT’s Mr. Jacinto said there are only about 20,000 cell towers nationwide, and the country needs about 40,000 more to be on par with other countries in the ASEAN region.

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.

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