Philippines’ new ICT chief orders spectrum audit
In this article (5)
The chief of the new Philippines Department of Information and Communications Technology (DICT) has ordered the inventory of used and unused telecoms spectra.
In his first public speaking engagement and media interview since assumption into office on July 1, DICT Secretary Rodolfo Salalima said frequency is a scarce public resource and the patrimony of the nation.
“I do not want public telephone entities to be warehousing frequencies, meaning getting assigned frequencies from the government, storing it without using it but using it for speculative purposes,” he said.
He clarified that this act is contrary to the Philippine Constitution and a public service law which states that frequency must be assigned only to those who can make it effective and efficient use of it.
“If they (telecommunications companies) have not used these frequencies within a reasonable time as stated in the position of giving or assigning to them the frequency, we better start revoking these frequencies because it ought to be assigned to telcos that can effectively and efficiently utilize them,” he added.
The DICT Chief, however, gave assurances that due process will be observed if the department will resort to revocation of spectrum licenses or permits if some telcos are found to have not used them within the prescribed period.
“We will hear them out,” he said, further clarifying that what telcos pay for is only the use of the frequency. “They do not become owners of these frequencies because they can never be owned under the Philippine Constitution.”
The issue stemmed from the recent co-purchase of the telco business of San Miguel Corporation (SMC) by the country’s two dominant carriers – PLDT and Globe Telecom, which the government’s antitrust body, the Philippine Competition Commission (PCC) now wants investigated.
“They do not become owners of these frequencies because they can never be owned under the Philippine Constitution.”
Salalima said frequency is crucial to the operations of telecommunications companies in servicing the public.
“This is the reason why to my mind, PLDT and Globe have to purchase control of the holding company of SMC so that at least they can have part of the frequency (not the entirety) needed for them to further improve the service,” he said.
He clarified though that he is leaving it to the PCC to decide on the issue of whether the telco buyout deal is in the best interest of the public. His concern is the efficient use of spectrum, especially in light of the need to improve internet connection speed in the country and public services.
Newly elected President Rodrigo Duterte has given local telecommunications players one year to shape up telco services and internet speed or ship out.
The DICT, which was given the mandate to make policies and plans in regard to telco services and the country’s ICT infrastructure, is still in the transition period. It is currently awaiting the Implementing Rules and Regulations (IRR) of the law that created the new department only last May.
Questions & Answers
Q.Why has the new ICT chief ordered an audit of telecoms spectra?
Why has the new ICT chief ordered an audit of telecoms spectra?
DICT Secretary Rodolfo Salalima wants to prevent public telephone entities from holding onto frequencies without using them for speculative purposes. He believes these unused frequencies should be reallocated to telcos that can effectively utilise them.
Q.What is the DICT's stance on telcos owning frequency allocations?
What is the DICT's stance on telcos owning frequency allocations?
The DICT Chief clarified that telcos pay only for the use of frequencies, not for ownership. He stated that under the Philippine Constitution, frequencies can never be owned by telecommunication companies.
Q.How does the recent purchase of SMC's telco business relate to the spectrum audit?
How does the recent purchase of SMC's telco business relate to the spectrum audit?
The audit addresses concerns that PLDT and Globe Telecom acquired part of SMC's frequencies, which they may have been warehousing. The DICT chief highlighted spectrum's importance for service improvement, linking it to this buyout.
Q.What happens if telcos are found to be warehousing frequencies?
What happens if telcos are found to be warehousing frequencies?
If telcos have not used assigned frequencies within a reasonable time, the DICT intends to revoke their licenses. However, the department assures that due process will be observed, and telcos will be heard out before any revocation.