NTC allows joint use of mobile phone frequencies

MANILA, Philippines - The National Telecommunications Commission (NTC) yesterday gave telecommunications providers in the country the green light to jointly use mobile phone frequencies to address the congested network resulting in a rise in the number of complaints from consumers.

NTC said it was mandated by Republic Act 7925 also known as the “Public Telecommunications Policy Act of the Philippines” to resolve the rising incidence of mobile communications complaints on blocked calls or grade of service, drop calls and signal quality.

The issuance was made after both Ayala-controlled Globe Telecom Inc. and Smart Communications Inc. of dominant carrier Philippine Long Distance Telephone Co. (PLDT) both failed the quality of service required by NTC.

“The primary purpose of the joint use is to improve efficiency and decongest the networks of the telcos to improve their services and comply with the quality of service prescribed by the Commission,” the NTC said.

The agency allowed Globe and Bayan Telecommunications Inc. (Bayantel) of the Lopez family to jointly use the 1800MHz Band frequencies assigned to Bayantel.

Bayantel, owned and controlled by the Lopez Group and Benpres Holdings, is currently undergoing rehabilitation.

On the other hand, PLDT-controlled Smart Communications Inc. and sister firm Smart Broadband Inc. (SBI) were given the green light to jointly use the 800Mhz, 900MHz, 1800MHz, and 2100MHz Band frequencies assigned to Smart and the 800MHz Band frequency assigned to SBI.

Furthermore, it also allowed Smart and Digital Mobile Philippines Inc ( Digitel) to jointly use the 800Mhz, 900Mhz, 1800Mhz, 2100Mhz Band frequencies assigned to Smart and the 1800Mhz and 2100Mhz Band frequencies granted to Digitel.

NTC said the telecom providers would have to pay additional Spectrum User Fees for the joint use of the subject frequencies and should comply with the quality of service required by the government.

“In case any of assignees of the subject frequencies ceases to operate, the assigned frequencies shall be deemed automatically recalled by the Commission,” NTC said.

In a separate statement, Smart asked NTC to initiate recall proceedings as Bayantel failed to use the 1800 MHz Band frequency that is subject to a “joint use” agreement with Globe to provide mobile phone service to the public.

Enrico Espanol, head of Smart’s Legal and Regulatory Department, said in a letter to NTC dated Sept. 28 that the frequencies should be offered to all interested and qualified applicants in an open and competitive bidding process.

“It is undeniable that Bayantel has not been using these frequencies for at least one year considering that it has not been providing any CMTS service to the general public. Consequently, these unused frequencies assigned to Bayantel should be recalled by the Honorable Commission upon service of notice and hearing,” he added.

NTC Memorandum Circular 3-3-96 on the Review, Allocation and Assignment of Radio Spectrum specifies, among others states that an assigned frequency which remains unused for one year from date of issuance of permits and license may thus be recalled or withdrawn consistent with national and public service.

Under the law and jurisprudence the assignment of a frequency to a telecom operator by the government does not confer on the operator a vested property right over the frequency.

“Our position is that the Commission is compelled by the law and its own rules and regulations to take this course of action,” he added.

He quoted a Supreme Court ruling that states telcos “are merely given the temporary privilege of using them.”

Espanol added that the “joint use” arrangement between Globe and Bayantel would lead to “enormous loss of government revenues as the latter would be deprived of income resulting from a competitive auction among interested bidders.”