The Department of Information and Communications Technology said Thursday said it may no longer bid out mobile frequencies to attract new mobile telecom players that can challenge the duopoly PLDT Inc. and Globe Telecom Inc.
“As far as I know, I do not control the frequency. If I am to be followed, [there would be] no auction because we don’t exist for revenue. We are here to provide public service. Give the frequency to those who will use it,” DICT Secretary Rodolfo Salalima said at the sidelines of the first Philippine Telecom Summit 2017.
“If any local franchise wants to be third or fourth operator of consequence in this country, [let them] bring in a foreign partner with legal, technical and financial credibility and capacity to mount a credible and effective competition against the existing telcos,” he said.
Salalima said prospective operators could file their applications for authorization with the NTC.
“I welcome you. This government welcomes you with open arms. We are ripe for a third or fourth player,” Salalima said.
“I don’t want a joker competitor just to get frequencies,” he said.
NTC commissioner Gamaliel Cordoba said the agency was encouraging new investors in the telecom industry.
“There are enough frequencies for third or fourth player,” Cordoba said, adding that there are four to five groups that expressed their interest to be a new player.
Joachim Horn, chief technology and information advisor of PLDT, said the group was not afraid about the entry of a new player,
Gil Genio, chief technology and information office of Globe said: “We are more than happy to compete.”
A potential third player”•San Miguel Corp.–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.
Meanwhile, Globe Telecom pushed for the amendment of the Local Government Code to expedite issuance of all relevant permits for all telecommunication facilities at the local level.
Genio said bureaucratic red tape was causing significant delay in securing various permits from the local government units concerned relating to the construction of telco infrastructure such as cell sites.
“We have repeatedly emphasized that there is no substitute for government support in developing telco infrastructure in the country,” Genio said.
“We need the government to prioritize and enable the sector to undertake infrastructure builds, not just in the construction of cell sites but also in establishing underground facilities and in facilitating pole attachments,” he said.
Genio said there were enough cell sites to enable telco operators such as Globe to sufficiently support mobile data growth in the country especially amid clamor for faster internet service.
A report by TowerXchange showed the Philippines has only 16,300 towers, compared to Vietnam’s 70,000 towers.
Genio said it was taking at least eight months and 25 permits to complete the approval process for the construction of one cell site.