NTC: Telcos paying for permit to operate 3G
The National Telecommunications Commission (NTC) said it spreads out over a period of time the permit fees paid by telcos that operate 3G (third generation) mobile phone communications to assure Filipino subscribers of "consumer friendly-rates."
The regulator emphasized that it did not give out communications licenses for nothing.
Earlier, Taguig-Pateros Rep. Alan Peter Cayetano said the government lost an estimated P15 billion when NTC awarded licences "for free" in violation of Republic Act 7925, the law liberalizing the telecommunications industry. The lawmakers added that NTC, by not auctioning the privilege of operating 3G, put the government at a disadvantage.
The NTC earlier awarded licenses and frequencies to Smart Communications Inc. Globe Telecom Inc, Digital Mobile Phils. Inc and Connectivity Unlimited Resources Enterprises (CURE). "The NTC did not violate the law (Section15, RA 7925) by disregarding public bidding or tender process of the 3G licenses/frequencies, which would have ensured that the best qualified telecommunications companies will receive the same," the regulators said in its position released Wednesday.
"The licensees continue to pay yearly spectrum user’s fee throughout the lifetime of their authorizations," the NTC added.
It said that by spreading out the fees over a long period of time, the Filipino 3G subscriber is assured of more consumer-friendly rates that, in turn, do not threaten the economic viability of a 3G network.
The NTC further said that the five licensees will pay a total of P375 million for spectrum fees (SUF) a year for the four operators with 10 MHz x 2, worth P65M multiplied 4, and one operator with 15 MHz x 2 worth P115M .
"In addition, the 3G operators have to pay SUF for the microwave radio links estimated to be P100 million a year for the 3G base station transceivers. Additional SUF of P1 M for every additional 100,000.00 users/subscribers after the first 4 M users/subscribers is imposed on the 3G operators," the regulator’s added.
It added that SUF increases as the number of users/subscribers increases beyond 4 million subscribers. The NTC streesed that other than earning huge revenues, "it is also in the national interest that Filipinos subscribing to the 3G services should be able to avail of such services at affordable rates.Fundamental business principles dictate that a 3G operator will for sure recover the cost of its acquiring the spectrum by passing them on to their subscribers."
The NTC also said the Commission has adopted the system called "beauty contest process" used in other countries in allocating 3G mobile licenses. The countries include Finland, France, Israel, Japan, Korea, Malaysia, Norway, Spain, and Sweden.
Regulatory authorities in the countries of Greece, Hong Kong, China, and Italy use a combination of both the beauty contest and auction process in the allocation of 3G licenses. Darwin G. Amojelar - ABS CBN NEWS
The regulator emphasized that it did not give out communications licenses for nothing.
Earlier, Taguig-Pateros Rep. Alan Peter Cayetano said the government lost an estimated P15 billion when NTC awarded licences "for free" in violation of Republic Act 7925, the law liberalizing the telecommunications industry. The lawmakers added that NTC, by not auctioning the privilege of operating 3G, put the government at a disadvantage.
The NTC earlier awarded licenses and frequencies to Smart Communications Inc. Globe Telecom Inc, Digital Mobile Phils. Inc and Connectivity Unlimited Resources Enterprises (CURE). "The NTC did not violate the law (Section15, RA 7925) by disregarding public bidding or tender process of the 3G licenses/frequencies, which would have ensured that the best qualified telecommunications companies will receive the same," the regulators said in its position released Wednesday.
"The licensees continue to pay yearly spectrum user’s fee throughout the lifetime of their authorizations," the NTC added.
It said that by spreading out the fees over a long period of time, the Filipino 3G subscriber is assured of more consumer-friendly rates that, in turn, do not threaten the economic viability of a 3G network.
The NTC further said that the five licensees will pay a total of P375 million for spectrum fees (SUF) a year for the four operators with 10 MHz x 2, worth P65M multiplied 4, and one operator with 15 MHz x 2 worth P115M .
"In addition, the 3G operators have to pay SUF for the microwave radio links estimated to be P100 million a year for the 3G base station transceivers. Additional SUF of P1 M for every additional 100,000.00 users/subscribers after the first 4 M users/subscribers is imposed on the 3G operators," the regulator’s added.
It added that SUF increases as the number of users/subscribers increases beyond 4 million subscribers. The NTC streesed that other than earning huge revenues, "it is also in the national interest that Filipinos subscribing to the 3G services should be able to avail of such services at affordable rates.Fundamental business principles dictate that a 3G operator will for sure recover the cost of its acquiring the spectrum by passing them on to their subscribers."
The NTC also said the Commission has adopted the system called "beauty contest process" used in other countries in allocating 3G mobile licenses. The countries include Finland, France, Israel, Japan, Korea, Malaysia, Norway, Spain, and Sweden.
Regulatory authorities in the countries of Greece, Hong Kong, China, and Italy use a combination of both the beauty contest and auction process in the allocation of 3G licenses. Darwin G. Amojelar - ABS CBN NEWS
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