NTC okays Globe-ABS-CBN network sharing agreement

MANILA, Philippines - The National Telecommunications Commission (NTC) has given Ayala-led Globe Telecom Inc. and multimedia giant ABS-CBN Corp. the green light to co-use network infrastructure.

NTC deputy commissioner Edgardo Cabarios said in an interview with The STAR that the regulator has approved the network sharing agreement as well as the co-use of number blocks between Globe’s Innove Communications Inc. and ABS-CBN Convergence Inc. (ABS-CBN C).

 â€œYes that is tantamount to approval,” Cabarios stressed.

In a letter, NTC commissioner Gamaliel Cordoba said the parties in the network sharing agreement should strictly observe the required quality of service and service performance standards.

“The commission acknowledges the network sharing agreement entered into by your company, Globe and ABS-CBN Convergence subject to the condition that the quality of service and service performance shall not be adversely affected and the prescribed quality of service and service performance standards are strictly observed and complied,” Cordoba stated in a letter to Innove Communications president Gil Genio.

He pointed out that NTC is encouraging the sharing of networks among players in the industry.

“The commission’s thrust of promoting sharing of passive and active network infrastructure to reduce cost of public telecommunications services and reduce the effects of radio base stations to the environment,” he added.

Last May 28, ABS-CBN announced it was investing between P2 billion and P3 billion to become a third player in the competitive telecommunications industry through a network sharing agreement with Globe.

ABS-CBN intends to offer traditional telecom services such as voice calls and short messaging system (SMS) as well as wireless internet to deliver content just like the two major players within the second half of the year.

In a letter to NTC, the groups sought the approval for the co-use of certain number blocks allocated to Globe and Innove.

The letter was signed by Globe president and chief executive officer Ernest Cu, Innove’s Genio, and ABS-CBN C president Carlo Katigbak.

Under the arrangement, Innove would allow the co-use by ABS-C of its local exchange numbers from among those that are available upon a subscriber’s use of service.

 â€œThe number blocks will be co-used by the parties to expand the coverage and extend the reach of Globe’s and Innove’s existing service authorized by NTC as well as expand the coverage and extend the reach of ABS-C’s existing service authorized as well by the NTC,” the letter read.

The groups said the co-use of the number blocks by Globe, Innove and ABS-C would allow respective parties to maximize their existing network and interconnect resources and enhance public service without further straining the existing numbering plan of NTC.

“It will provide additional capacity and coverage for our country’s continually expanding subscriber base without wasteful duplication of resources and investments, consistent with the objectives of the Commission to provide efficient telecommunications service to the public,” they added.