NTC issuing new rules for frequency auction

MANILA, Philippines — The National Telecommunications Commission (NTC) is coming up with new terms of reference (TOR) for the auction of frequencies to be conducted for the selection a new major telco player.

Department of Information and Communications Technology (DICT) Acting Secretary Eliseo Rio Jr. told reporters the NTC was tasked to come up with a new TOR during the recent meeting of the oversight committee.

The oversight committee created to oversee the entry of a new telco player is chaired by the DICT and consists of the Department of Finance (DOF), the Office of the Executive Secretary and the National Security Adviser as members.

Rio said the new TOR is in line with the inputs of the DOF.

Earlier, Finance Secretary Carlos Dominguez expressed concerns on the proposed process for the selection of a third telco player, saying the pre-qualification criteria is seen to be weak as it fails to set up parameters that will ensure the third telco player has the capability, both financial and technical, to compete in the long term.

He also expressed concern in the “beauty contest” conducted in the past for awarding of frequencies as such has resulted in frequency hoarding and failure of companies to improve the service.

Under the memorandum released earlier by DICT, the applicant with the highest committed level of service or investment for the first five years of operations would be named as the new major telco player.

Rio said after the new TOR for the auction is prepared, it would be presented to the oversight committee and compared wth the previous TOR.

He said there are two ways of granting frequencies, through a beauty contest or auction.

“Beauty contest, we have done beauty contest. But we never did an auction…It may be a hybrid or something like that, but more on having a winning telco. The winning contender (should) prove that he has the capability, at least financially, to roll out the necessary services,” he said.