NTC to prepare rules governing 3G technology

The National Telecommunications Commission (NTC) is to prepare a regulatory framework before May to govern the allocation, possibly through bidding, of new frequencies that will allow local mobile phone service providers to go into the controversial third-generation (3G) of wireless communications technology, currently the rage in Europe and Japan.

The STAR learned that this early, two companies namely Multi-Media Inc. and Cure have applied for a provisional authority with the NTC to offer cellular mobile telephone system (CMTS) service, a business currently dominated by Smart Communications/Piltel and Globe Telecom with Gokongwei-owned Sun Cellular still trailing far behind being a new entry. Both Multi-Media and Cure, however, are proposing to use 3G.

NTC Commissioner Ronald Solis told The STAR that all the current CMTS operators such as Smart, Piltel, Globe, and Sun Cellular have said that if ever the technology would go into the 3G system, all of them will be prospective applicants for 3G licenses.

Solis revealed that right now, the NTC is getting briefings from various groups that have experience with 3G in Europe such as Ericsson and Alcatel, officials of the GSM Association (GSMA), and culling information from various sources to get a better picture of what 3G can really offer.

At present, local operators use GSM (global system for mobile communications) technology which is also called 2G or second generation. They have upgraded to GPRS (general packet radio service) or 2.5G but have not really exploited its full potential. GPRS and other GSM upgrades such as EDGE technology though do not require a different set of frequencies from government.

Solis explained that the commission is looking at the possibility of auctioning 3G licenses/frequencies like what Europe did. European operators, however, had a bad start with 3G when their government imposed huge license fees which made them incur heavy financial losses. "In coming up with a regulatory framework for 3G in the Philippines, we will have to analyze what happened in Europe and find out what we can and should not apply locally," he said.

In looking at 3G applications, the NTC chief said the commission will likely look at the financial, legal, and technical capability of the applicants. He pointed out that in Europe, most of the 3G licensees are having problems starting their systems since they have spent all their money paying for the spectrum fees. "Unlike GPRS, 3G will not involve new infrastructure, different frequency, and definitely more financing," he said.