Globe backs PLDT call to auction off idle SMC frequencies

MANILA, Philippines - Ayala-led Globe Telecom Inc. has joined the call of Philippine Long Distance Telephone Co. (PLDT) to facilitate the equitable distribution of the unused 700 megahertz (Mhz) band held by San Miguel Corp. (SMC), through an auction for improved Internet speed.

Globe president and chief executive officer Ernest Cu told reporters the company would be interested to participate in the auction should the government decide to bid out the mobile frequency band.

“I wish the government would bid it out,” he said.

The 700 Mhz frequency band or so-called digital dividend to mobile telecommunications is considered key to provide faster Internet speeds and address the mobile data explosion.

“Part of the solution to the clamor for faster Internet is the harmonization of the 700 Mhz frequency,” Globe general legal counsel Froilan Castelo said.

“Giving active and operating telecommunications companies access to this band will allow the industry to provide broadband and data services at faster speeds and in a more cost-efficient manner,” he said.

As early as 2005, Globe has written to the National Telecommunications Commission (NTC) seeking an allocation and assignment of frequencies within the 700 Mhz and 800 Mhz for its broadband wireless network, but the agency declined its request.

Earlier, PLDT also called on the NTC to put on auction the frequency band to industry players who actually have more subscribers than SMC. 

Ray Espinosa, regulatory and policies head of PLDT said the frequency is a scarce and powerful resource enabling wider coverage as well as faster speeds with less capital spending needed.

Elsewhere in the world,  the spectrum is being made available to existing operators and new entrants to enable them to provide better quality of Internet service to subscribers.

“If we want the mobile, the Internet to be faster, to provide better quality service to consumers, PLDT- Smart and Globe and the others should have access to this 700 Mhz which is a very scare resource,” Espinosa said.

SMC currently holds 90 Mhz of the total 100 Mhz on the 700 Mhz band through wi-Tribe Telecoms, Inc.’s 80 Mhz and High Frequency Telecommunications Inc.’s 10 Mhz. The remaining 10 Mhz is held by New Century Telecommunications.

SMC is currently in talks with Australia’s biggest telephone company Telstra, for a possible joint venture in the wireless business.