Gov’t crafts new guidelines on selection of third telco player, gives weight to financial capability
The Department of Information and Communications Technology will come up with a new set of guidelines on the selection of a third telco player to make sure that the government will be able to raise enough revenues from the auction.
Based on the previous terms of reference for the selection of the third player, the committed level of service was the major parameter.
DICT Acting Secretary Eliseo Rio said the financial capability of the potential player would now be the primary parameter.
Rio said the bidder who offers the highest spectrum user fees (SUF) would be declared the winner. The new guidelines are expected to be issued in two weeks.
SUF is based on the amount of spectrum used, the type of service being offered and the economic classification of the areas covered by the radio stations. It is collected annually in addition to all existing fees collected by the NTC.
Under the previous joint rules drafted by DICT and the National Telecommunications Commission, the prospective bidders should have a net worth of at least P10 billion with a Congressional franchise to operate telecom services.
The draft rules further said the prospective bidders should not be a related party to any telecom group with a mobile and broadband wireless market share of at least 40 percent, it said.
The winning bidder will get these frequencies — 700 megahertz (MHz), 850 MHz, 2100 MHz, 2010 MHz, 2.5 GHz (gigahertz) 3.3 GHz, 3.5 GHz and 10.5 GHz to the new major player.