Lawmaker urges government to invite more telco firms

MANILA, Philippines — Quirino Rep. Dakila Cua urged the government yesterday to invite more telecommunications companies (telcos) to operate in the country.

“Why limit the invitation to a third telco? Why not a fourth, fifth, sixth telco?” he asked.

He was referring to the effort of the Department of Information and Communications Technology (DICT) to attract a third telecom operator to compete with the two dominant telcos, Smart and Globe.

Cua said he has filed a bill that would result in more telecom entities operating in the country if it is enacted into law.

He said the measure seeks to punish an operator who “hoards” radio frequencies. 

“In the United States, which has the same limited amount of spectrum, frequencies are assigned to many players. They have four major telco companies and many other smaller telco companies. Here, majority of the frequencies are assigned to two players and the companies under their control,” Cua said.

He added that a new player would need radio frequencies to offer call, text and internet services.

Cua explained that under his bill, a telco would be charged bigger spectrum user fees if it is not using or is under-utilizing its radio frequencies.  

“The National Telecommunications Commission (NTC) will be given the power to initiate call back or recall proceedings on unused, unutilized and/or under-utilized frequencies,” he said.

Cua said the commission would be allocated enough funding to upgrade its capabilities to measure usage of frequencies.?“By breaking the control of the two players over the country’s frequencies, we increase competition and welcome new players. We expect that this will result in improved service quality, faster internet speeds and lower prices,” he said.

The DICT expects to qualify a third telco this month. The chosen telco will take months, possibly years, to start operations. It needs to obtain a franchise from Congress and the necessary permits from the NTC.