New 3rd player selection terms expected in two weeks

THE National Telecommunications Commission (NTC) is expected to come up with the new terms of reference governing the selection of the third entrant to the telecommunications industry, Department of Information and Communications Technology (DICT) acting secretary Eliseo M. Rio, Jr. told reporters.
“It will take roughly two weeks,” he said, adding that the NTC is awaiting the input of consultants from the International Telecommunication Union (ITU),” he said.
Last week, the member agencies of the oversight committee rejected the terms of reference presented by the NTC and asked for revisions putting greater weight on financial considerations. Mr. Rio noted there was no set deadline, but the NTC’s response is expected in two weeks.
“The terms of reference where the level of service was the major parameter is still there,” Mr. Rio said, noting that this will help select a third player that is “responsive” and capable of rendering services that will “compete with Globe and Smart,” he added, referring to the incumbents Globe Telecom, Inc. and Smart Communications, Inc., a unit of PLDT, Inc.
He added the oversight committee also values the revenue-generating potential for the government, without elaborating
He assured that the selection process for a third player has not stalled, as the entry of a new competitor is heavily supported by the public and is backed by marching orders from President Rodrigo R. Duterte.
The date for the auction to select the third player is also expected in two weeks, but it may not come before the State of the Nation Address in July.
Mr. Rio said the terms for the third player’s spectrum user fee (SUF) are also being drawn up. The SUF is a government-mandated fee collected every year according to the spectrum, type of service and economic classification of the areas served by a telco provider.
“That’s their come-on strategy — if you win, you don’t have to pay the SUF for five years. What you pay for in the bid will include the five-year payment for the SUF,” he said.
He noted that this is important to level the playing field against Globe and Smart.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in ����ý through the Philippine Star Group, which it controls. — Denise A. Valdez