Fashion
A Philippines Senate committee plans next year to draw up legislation that would reform the nation’s telecommunications industry.
The Senate committee on economic affairs is considering reforms including granting more powers to regulator the National Telecommunications Commission (NTC), Rappler reported.
Another proposed change involves removing the 40% owner restriction on overseas investments in telecommunications ventures to allow foreign players to more freely operate in the market.
The committee is critical of the NTC’s recent decision to quickly review the planned sale of San Miguel Corporation’s telecoms assets, including its highly-prized allocation of 700-MHz spectrum, to the incumbent duopoly of Globe and PLDT.
The committee aims to strengthen the NTC’s powers to protect consumers and promote healthy competition, while ensuring the regulator is independent.
In terms of foreign investments, operators are currently classed as public utilities, limiting foreign investment to 40% and restraining the establishment of prospective joint ventures and the entry of new players.
The committee is proposing to exclude telecommunications from the definition of a public utility, which would circumvent the need for a constitutional change to allow the liberalization of the nation’s telecoms sector.
Even incumbents PLDT and Globe are supporting the proposal to open up telecoms to foreign players on the grounds that it would benefit both consumers and the industry.
