New telco to be chosen via points system
The challenger to the PLDT-Globe duopoly will be determined via a points-based selection process instead of an auction, the chief of Department of Information and Communications Technology (DICT) said on Friday.
An oversight committee voted to endorse the highest committed level of services (HCLoS) model, DICT officer-in-charge Eliseo Rio, Jr. said, rejecting an auction backed by the Department of Finance (DoF).
Capital and operational expenditures, national population coverage and average broadband speeds will be the primary criteria under the HCLoS process, with points assigned to the level of commitments made by the prospective third telco.
The DoF, a member of the oversight committee, wanted to monetize the process and pushed for a spectrum user fee auction. It opted to abstain during voting, Rio said.
A public consultation held earlier this month had 11 out of 15 telcos voting for the points-based system, a development that Rio claimed influenced the committee’s decision.
The final terms of reference (TOR), however, may have to wait for a court ruling on disputed frequencies previously owned by Bayan Telecommunications.
“We are waiting a court decision, hopefully, next week so after that pwede na (it can be done),” Rio said.
“If wala, we can take that Bayantel muna out sa terms of reference para mag move at hindi na magkaroon ng delay (If there is no ruling, we can take the Bayantel frequencies out of the TOR so that the process can move and there will be no delay),” Rio added.
The DICT chief had threatened to resign if an auction was approved, claiming that forcing the new major player to pay “upfront money” would only benefit the duopoly.
President Rodrigo Duterte late last year declared that he wanted the third telco to be operational by the first quarter of this year. While this was highly unlikely, delays in finalizing the selection rules prompted Malacañang to create the oversight committee, comprised by the DICT, DoF, the Office of the Executive Secretary and the National Security Adviser.
Rio earlier said he was hoping to release the final TOR by August and name the third major player before the year ends.
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