Another draft TOR offers auction option
Third telco aspirants may have to participate in a spectrum user fee (SUF) auction under a second set of draft rules released by the government.
New terms of reference (TOR) call for a public sale as opposed to the points-based selection process detailed in a draft TOR released earlier this week.
“The participant that offers the highest amount of bid for five years shall be selected as the NMP (new major player),” the new draft states.
“After the said period, the new major player shall be subject to the applicable SUF pursuant to prevailing rules and regulations. The minimum amount of bid shall be P36.58 billion.”
Department of Information and Communications Technology officer-in-charge Eliseo Rio said both sets would be considered in deciding the final NMP selection process.
These will “be compared with the other as to what version will more encourage participation in the selection of a third player,” he added.
Up for bidding will be frequencies in the 700 and 2100 megahertz (MHz) and 2.5, 3.3 and 3.5 gigahertz bands.
The latest draft TOR retains the qualification provisions of potential bidders needing to hold a congressional franchise, paid-up capital of at least P10 billion and a minimum of five years’ experience in providing, delivering and operating telecommunications services.
Rio said the government would be holding a public consultation next Friday to gather stakeholder concerns and suggestions regarding the two drafts.
“The stakeholders will help us decide … which one will be more effective in selecting a third [player]that can give better and less expensive telco services,” he added.
The earlier draft TOR proposed to assign points to prospective player’s five-year commitments on capital and operational expenditures, average broadband speeds and population coverage.
Selection of the third telco, which President Rodrigo Duterte wanted to be operational by the first quarter of 2018, has been pushed back due to delays in finalizing the TOR.
Rio has said that an award could be made by the third or fourth quarter.
Three companies — Philippine Telegraph & Telephone Corp (PT&T), NOWCorp. and ICT Converge Solutions Inc. — have expressed a desire to challenge the PLDT and Globe duopoly.
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