Firms say govt favored rival’s 3G application

By Darwin G. Amojelar, Manila Times Reporter

COMPANIES that failed to qualify for a license to operate 3G (third generation) technology mobile phone service have accused the National Telecommunications Commission (NTC) of “curing” the deficiency of Connectivity Unlimited Resource Enterprise Inc. (CURE) on its minimum roll-out plan, documents submitted to the regulator showed.

3G, which allows much faster connection to existing wireless telephone networks and faster Internet access for the transfer of volumes of data in various forms, is touted as the next biggest thing in the telecommunications business.

In its motion for reconsideration, AZ Communications Network Inc. said “... it is worthy to note that one of the successful applicants granted with the 3G license and frequency band applied for under the consolidated order, namely CURE, actually failed to qualify for the 3G license applied for in view of its failure to comply with the minimum rollout requirement as provided under Section 3.6 (g) of MC No. 07-08-2005.”

Sec. 3.6 of the circular calls for submission of proof of track record in the operation of mobile telecommunications systems, particularly 3G networks, the submission of a 5-year roll-out plan to cover at least 80 percent of the provincial capital towns/cities and 80 percent of the chartered cities.

It also requires submission of a written undertaking that would allow the sharing of network and facilities with other 3G players in areas where demand prevents more than one 3G network.

AZ Communications claimed that “despite this failure to qualify, this Honorable Commission nevertheless allowed CURE to ‘cure’ this deficiency by accepting the latter’s submission to this Honorable Commission on October 27, 2005.”

Another applicant, Next Mobile Inc., also alleged that CURE shouldn’t have been awarded a 3G frequency for lack of financial capacity and the failure of its original roll out plan to meet the minimum area coverage.

“Further, CURE merely belatedly submitted a ‘written commitment’ to cover

95 percent of the provincial capital cities and municipalities and 90 percent of the chartered cities within 48 months from the date of assignment of 3G allocated frequencies,” Next Mobile said in its motion for reconsideration.

It added that such a written commitment is not allowed under the memorandum order, nor is there “anything in the rules which provides for ‘partial points’ for applicants [that] do not meet the minimum required coverage.”

Next Mobile said CURE should have garnered a total of 15.5 points or at best 16.5 points “making it ineligible to qualify as a frequency assignee for failing to garner at least 20 points.”

The NTC earlier gave CURE a score of 20.5, making it the fourth applicant to be awarded the 3G license, trailing Smart Communications Inc with a perfect score of 30; Globe Telecommunication Inc., 29; and Digitel Mobile Phils. Inc., 28.

Based on the criteria the NTC set, Next Mobile said it should have gotten 23.5 points, or enough to merit it a 3G license.

The NTC junked Next Mobile’s bid to operate 3G owing to its unpaid supervisory and regulatory fees amounting to more than P129 million.

Other applicants that failed to secure a license were Lopez family-led Bayan Telecommunication Inc., Multimedia Telephony Inc., and Pacific Wireless Inc., all of which filed their respective motions for reconsideration.