NTC wants to open 3G to new players

By EMMIE V. ABADILLA, MB

Telecom regulators threw out the prior operator rule and refused to require new players applying for Third Generation (3G) technology licenses to roll out wirelines in the outrageously expensive way that existing providers did.

With the low demand for wirelines or Local Exchange (LEC), the National Telecommunications Commission (NTC) insisted it cannot subject new 3G operators to" the same obligations for universal service imposed on current Cellular Mobile Telephone System (CMTS) operators employing the Second Generation (2G) system."

Instead of individual telephone land lines, new 3G players can put up public calling offices (PCOs) and telecenters in unserved municipalities and barangays. Their rollout obligation will not be "as financially taxing as before," NTC stated in the latest draft of its 3G allocation guidelines.

Existing operators cannot say "there is no uniformity on vying CMTS entities," according to NTC.

The guideline for universal access requires establishing PCOs in unserved areas. The Department of Transportation and Communications approved the guideline when NTC was still its attached agency and continues to be in effect, Commissioner Ronald Olivar Solis pointed out.

NTC also believes that P400 million would be enough to cover the initial cost of a prospective 3G operator. Imposing higher capital requirements would be too financially burdensome for applicants. Earlier, a CMTS operator estimated that one needs to invest US$1.2 billion to get into 3G.

Furthermore, the commission maintains that "there is absolutely no basis for the continued insistence of current CMTS operators on the applicability of the prior operator rule in the award of 3G licenses and frequencies."

While regulators require proof of track record in the operation of mobile telecommunications systems, particularly of 3G networks, present 2G operators are not necessarily at a disadvantage, according to NTC.

The requirement does not necessarily exclude experience in operating 2G networks. Current CMTS providers may also form strategic partnerships with foreign 3G operators.

Existing CMTS players fear that the provisions on mandatory network sharing and roaming may allow 3G operators who have not fully complied with their network rollout to hook up with the network of 2G operators as well as that of a 3G operator which has successfully rolled out its own 3G network.

NTC is requiring 3G networks to have mandatory interconnection with all public networks, including trunk radio networks.

However, NTC’s requiring 3G licensees to "begin the installation and construction of the 3G network and facilities not later that 12 months from date of award," "start commercial operation not later than thirty (30) months from date of award," and "cover at least 80% of the provincial capital cities and towns and 80% of the chartered cities within sixty (60) months from the date of award" should be sufficient safeguards to this kind of mischief.

NTC has also revised its guideline so that before an operator can have mandatory network sharing and roaming, he should first construct his 3G network. The latter is a condition for the former.

The Commission likewise shortened the time frame for operators to submit their schedule of rates from five years to two years.

Assessment of the spectrum user fees (SUF) will be based on profitability of each 3G operator, based on the number of their subscribers

 

 

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