Digital Telecommunications Philippines Inc. (Digitel) has been left out in the 20 Megahertz radio frequently reallocation of the National Telecommunications Commission (NTC), dimming its chances of immediately getting a provisional authority (PA) to operate cellular phone services.
Already, the NTC has approved the application of newcomer Bayan Telecommunications Inc. (BayanTel) for 10 Mhz frequency. Another five Mhz was given to Smart Communications Inc. a month ago, while Globe Telecom is vying for the remaining five Mhz.
Both Smart and Globe need additional frequencies to accommodate their fast-growing subscriber base.
Digitel, though, cannot settle on five Mhz since it would require at least 7.5 Mhz as initial capacity similar to what was given to other mobile phone operators.
But not all is lost for Digitel since the NTC is about to reallocate more frequencies in the two or three Gigahertz band in preparation for third generation (3G) mobile phone systems.
NTC Deputy Commissioner Nestor Dacanay is currently in Turkey attending the 3G conference sponsored by the International Telecommunications Union (ITU).
However, the commission has yet to meet en banc to discuss Digitel's petition.
The Lopez-owned BayanTel is expected to start its cellular phone operations based on the global system for mobile communications (GSM) technology early next year with an estimated infrastructure cost of P6 billion and an initial 45 cell sites in Metro Manila.
The NTC has reallocated 20 Mhz radio frequency bands: 1745-1750 Mhz/1840-1845 Mhz; 1750-1755 Mhz/1845-1850 Mhz; 1765-1770 Mhz/1860-1865 Mhz; and 1770-1775 Mhz/1865-1870 Mhz as it opens the door to new mobile operators.
In memorandum circular 9-3-2000, the NTC said that telephone companies which have successfully installed the required number of landlines in their respective service areas, could apply for a license to operate a cellular phone network.
BayanTel and Digitel were both able to finish their commitment to put up at least 300,000 landlines ahead of the three-year period given by government.
Cellular phone companies are required to install at least 400,000 telephone lines in exchange for the PA.
While in the past, there were five CMTS operators, there are now effectively, three left as Smart merges its operations with Pilipino Telephone Corp. (Piltel) and Globe Telecom does the same with Isla Communications Co. (Islacom).
Only Express Telecom does not have any partner yet but with BayanTel joining the industry, it is likely that the former could use the latter's GSM network to improve its services. BayanTel has a 46.6 percent stake in Express Telecom.