Express Telecommunications Co. has asked the Court of Appeals (CA) to restrain the National Telecommunications Commission (NTC) from entertaining the application of Digital Telecommunications Philippines Inc. (Digitel) to provide cellular phone services in view of an existing government policy limiting the number of operators.
In a motion for reconsideration filed before the Court of Appeals, Express Telecom pointed out that radio spectrum or the frequency where a wireless service provider can operate, is a scarce resource that should be preserved.
Express Telecom noted that when Globe Telecom, Smart Communications Inc. and Isla Communications Co. (Islacom) were allowed to enter the cellular mobile telephone system (CMTS) market in 1993, the National Telecommunications Commission (NTC) suspended the acceptance of new applications.
Express Telecom and Pilipino Telephone Corp. (Piltel) were given the CMTS provisional authority in 1992 based on an earlier DOTC policy.
This time, however, the NTC is entertaining the possibility of allowing another provider by studying the application of Digitel.
If such is approved, Express Telecom said NTC will be depriving existing CMTS operators of the much-needed radio spectrum for the expansion of their respective networks.
"NTC is guilty of grossly ignoring its own policy, to glaringly favor a new entrant in the CMTS market. This is simply grave abuse of discretion. NTC has virtually opened the door to more applications for CMTS authority which will further exacerbate the telecommunication traffic congestion already posed by the limited resource of radio frequency spectrum," the company said.
Likewise, Express Telecom said that the "flip-flopping" of NTC does not only undermine the confidence of the existing operators but will jeopardize the physical, capital and human investments deployed by the companies under the roll-out program.
Thus, Express Telecom sought the court's intervention to restrain the NTC from attending to the application of Digitel which is now undergoing public hearing.
"Digitel's entry will result in the poaching of the radio spectrum allocated for existing CMTS operators and will result in wasteful and ruinous competition," it added.