More firms ask for reconsideration of 3G applications

By Erwin Lemuel Oliva, Inquirer

APART from Bayan Telecommunications Inc., (Bayantel) several more companies disqualified from the initial bidding of third-generation (3G) mobile network licenses have filed for reconsideration with the National Telecommunications Commission, INQ7.net learned Friday.

NTC Deputy Commissioner Jorge Sarmiento said Multimedia Telephony Inc., Next Mobile, AZ Telecommunications, and Pacific Wireless have asked the NTC to reconsider their applications with the NTC.

The NTC’s deadline for filing motions for reconsideration expired January 13.

NTC chair Ronald Solis has said earlier that AZ Communications, a company owned by Tony "Boy" Cojuangco, and Pacific Wireless failed to qualify because they failed the "debt to equity" requirement of the NTC.

"Both did not measure up to the debt to equity requirement we specified," Solis said.

Next Mobile was disqualified on grounds that it had "unpaid supervision and regulatory" fees with the NTC.

Multimedia Telephony Inc., a firm managed by Jose de Venecia III, fell short of the minimum requirements of NTC to qualify as a 3G operator, Solis said.

The NTC has granted government 3G licenses to four operators namely Smart Communications, Globe Telecom, Digital Telecommunications (Digitel), and Roberto Ongpin-led Connectivity Unlimited Resource Enterprise Inc.

The Lopez-owned telecommunications firm Bayantel was first to ask the NTC Wednesday to reconsider its application for a 3G mobile network license.

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Few firms have applied as VoIP service provider, says NTC
By Erwin Lemuel Oliva, INQ7.net

SO FAR, only two companies have applied to become Voice over Internet Protocol (VoiP) service providers with the National Telecommunications Commission, INQ7.net learned Friday.
Edgardo Cabarios, director of the common carrier division of the NTC, said that the agency has officially received two applications from two firms, but he declined to name them.

Cabarios said that it has yet to receive applications from any companies wanting to become VoIP resellers.

The NTC released the final rules and regulation for local firms to qualify as VoIP providers or resellers. Under government regulations, a VoIP provider is required to have at least 10 million pesos capitalization, while resellers only need to post a 5 million performance bond.

William Torres, president of the Philippine Internet Service Organization (PISO), said in a separate interview that local firms like his company, Mosaic Communications (Moscom), are among the local companies interested to play in the VoIP business that is expected to be dominated by major telephone companies.

Moscom is one of the biggest Internet service providers in the Philippines.

Although declining to disclose Moscom's plans, he said that the local Internet service industry has spearheaded the push to deregulate commercial VoIP service in the country. But some members of PISO feel that the required capitalization is still "high."

An owner of a local Internet service provider who declined to be identified, however, stressed that the capitalization issue is not the main reason why local ISPs are not yet applying as VoIP providers.

"There is a clause in the NTC regulation that requires VoIP providers to interconnect with the telcos. Based on our experience, telcos would naturally drag their feet, as we negotiate terms with them," the owner added.
Nonetheless, PISO's Torres said that the local organization has welcomed NTC's effort.

"We did write our position paper, saying that we welcome the issuance of the NTC VoIP regulation. It was something that we can live with. But some people still believe that the capitalization is still too high, but there's an opportunity for them to become a resellers," Torres said.

In his opinion, the current NTC regulations challenges local firms to "play like a telco" when they decide to enter the VoIP service business in the country.

"I believe that the VoIP service [provided by independent VoIP providers] will still need to interact with traditional phone services of local telcos. An Internet service provider who cannot play as a VoIP service provider can still play as a VOIP reseller by teaming up with another telephone company," Torres added.

The PISO head, however, admitted that technology now allows any local company to offer VoIP service without the need to post a performance bond or raise enough paid-capital to get the nod from NTC.

Video-conference software that is available to any firm today incorporate VoIP technology, he said. "So I don't see why you cannot go on with providing VoIP service," he said.

In November 2005, the NTC decided to issue stricter guidelines to discourage fly-by night VoIP operators in the Philippines. This justified the requirement to peg capitalization at 10 million pesos, officials said last year.

Torres said that an opportunity has recently emerged from the discussions on capitalization requirements by the NTC.

Smaller telephone companies have engaged local Internet service provider (ISP) to offer VoIP service outside of their franchise areas. Seen as a radical development, Torres believes that the partnership between a smaller telco and a local ISP would allow ISPs to bypass capitalization requirements by the NTC.

Smaller telephone companies in the Philippines are already qualified to become VoIP providers, thus they can already operate as a VoIP provider without applying to NTC, Torres said.

"Moscom is in process of partnering with smaller telco to offer VoIP," he said.