The Department of Information and Communications Technology said bidding out the frequencies in selecting a third telecommunications player would only benefit the duopoly of PLDT Inc. and Globe Telecom Inc.
“Some argue that auctioning the frequencies in selecting the new major telco player would be beneficial to the Filipino people for it would monetize the spectrum that they own. Yes, the highest bidder will put upfront billions of pesos to be awarded the frequencies,” Acting DICT Secretary Eliseo Rio said.
“But, from whom shall the winning telco recover this auction expense that has nothing to do with rolling out its infrastructures and nothing to do with improving telecommunication services? From the Filipino people, of course,” he said.
“It will in fact just make of telco services more expensive than when the frequencies were awarded free. It will just make the winning telco uncompetitive to the duopoly that never paid the Filipino people for their frequencies. Thus, an auction will not benefit the Filipino people, it will only benefit the duopoly,” he added.
DICT ’s informal survey among 15 potential players that participated in the public hearing last Friday found out that 75 percent preferred the highest committed level of service or HCLoS for the selection of the new major telco player.
Results of the survey showed that only 17 percent among the participants chose the auction mode being pushed by Finance Secretary Carlos Dominguez. Eight percent abstained from the survey.
The results of the survey will be presented to an oversight committee, composed of the DICT, the National Telecommunications Commission, the Department of Finance, the National Security Adviser and the Office of the Executive Secretary.
Under the HCLoS, the criteria for the selection of new major telco player are national population coverage (40 percent weightage), minimum average broadband speed (20 percent weightage) and annual capital and operational expenditure (40 percent weightage) computed annually over a five-year period.
