NTC says RP now ready for 3G services

By EMMIE V. ABADILLA MB

Unlike local telephone companies (telcos), the National Telecommunications Commission (NTC) believes that the Philippines is ready for Third Generation (3G) services.

But while NTC is inclined to categorize 3G services as mere enhancements of the existing 2G technology, it intends to encourage free competition and does not want to limit 3G licenses to existing cellular mobile telephone service (CMTS) operators.

"The Commission believes that the proposed allocation of 3G frequency bands cannot be limited to existing CMTS franchise holders and licensees nor can the "prior operator rule" be invoked to foreclose the participation of other telecommunications entities able to provide 3G services to the public," Commissioner Ronald Olivar Solis stated in the revised 3G circular issued the other day.

He pointed out that as a result of the roll-out requirement of existing operators, more than 6.6 million local exchange lines have been deployed nationwide. However, less than half, or about 3.3 million, of these lines were actually subscribed to by individual households.

However, "even though the Commission is cognizant of the waning demand for local exchange lines and believes that there is presently a need to rethink the wisdom behind the imposition of the rollout requirement, it is bound to implement existing policy as directed by E.O. No. 109 and R.A. No. 7925 to achieve universal service."

Hence, prospective 3G licensees are to be subjected to the same obligations for universal service imposed on current CMTS operators employing the 2G system.

Nevertheless, the service requirement need not be as prohibitive since the applicant may now establish public call centers in lieu of individual telephone landlines in order to sufficiently comply with their obligation under E.O. No. 109 and R.A. No. 7925.

Furthermore, the commission has revised its spectrum user fee structure to be more flexible, from P450 Million per bandwidth for 3G radio frequency bands to a graduated scale based on the number of frequency bandwidths which are to be applied for and used by the 3G licensees.