NTC extends to 3 years validity of Globe PA

After several months of dilly-dallying on the matter, the National Telecommunications Commission (NTC) finally approved the application filed by Globe Telecom for the extension of its provisional authority (PA) to engage in the mobile phone business in the country.

NTC Commissioner Eliseo Rio told The STAR that Globe Telecom was the first company to benefit from a new policy of the commission, approved just recently, to extend the validity of the PA from one year to three years.

Globe’s application for an extension of its PA was approved by the NTC in an en banc meeting last Tuesday.

The company’s PA had expired since late last year, but the NTC, under the old administration, refused to extend Globe’s authority to operate apparently in retaliation for its refusal to abide by a ruling of the commission last year asking Globe to voluntarily stop accepting new subscribers for a while due an oversubscription which occurred sometime July-August.

Globe contested the decision handed down by former NTC Commissioner Joseph Santiago saying it had no legal and technical basis.

Previously, PA’s only had a validity of one year. But according to Rio, there was a need to extend this to three years since it takes a long time to review it. "By the time the NTC issues the extension, it’s only a few months before it is time to file for an extension again," he said.

Rio also said that a similar application filed by Smart Communications, Inc. for an extension of its PA will be taken up during NTC’s en banc next meeting. He said Smart’s application will most likely be approved. "Again, it will be valid for three years," Rio said.

Smart also has a pending application for a certificate of public convenience (CPCN) which is the more permanent authority. But Rio said the CPCN of Smart will have to wait pending a review of the company’s network and facilities.

Smart’s PA also expired last year but that of Globe expired a few months earlier. Thus, Globe’s approval came early.

The NTC simply multiplied the fees which the companies have to pay for the extension by three years to cover the three-year validity of the PA. "It is still cheaper if one considers the hassle of coming to the NTC and following up the application," he said.

While the PA is a continuing authority which means that it is valid until revoked and that the companies can continue operating even if it has already expired, officials of Globe and Smart complained that some of the creditors and business partners were asking that all their permits be in order.