NTC prepares rules for bidding of radio frequencies

The National Telecommunications Commission is currently reviewing the experiences of other countries to come up with the rules and regulations for the bidding out of radio frequencies that will implement Executive Order no. 307 issued by former President Joseph Estrada last Oct. 31, 2000.

NTC commissioner Eliseo Rio told The STAR that the rules will include those that will govern the bidding out of 3G (third generation) frequencies which are considered to be very important and highly in demand.

What is currently being offered by cellular phone companies in the Philippines is 2G or what is commonly known as GSM or digital wireless. Later this year, companies like Smart Communications are planning to offer 2.5 G or the general packet radio service (GPRS) which will pave the way for the emergence of 3G wireless networks.

Third generation will offer not only text messaging, but also opportunities for high quality voice services, unrestricted digital data transmission at rates of 64 kbps, and videoconferencing. Already, Japan is planning to launch 3G sometime May of this year.

GPRS, which is in between 2G and 3G, on the one hand, allows one to be connected to the Internet all the time, without the hassle of dialing, unlike the highly problematic WAP (wireless application protocol).

Former NTC chief Joseph Santiago earlier planned to hold the biddings for the 3G frequencies, which will be in the 1950-1980 and 2140-2170 Mhz band middle of this year.

Rio said that before any bidding for the 3G frequencies can take place, the three-member committee created under EO 307 composed of the NTC commissioner, one member from the Department of Transportation and Communication, and another from the Economic Coordinating Council must first formulate the guidelines for the allocation and auction of radio frequency spectra.

The committee is also tasked to designate the actual frequencies of the license to be auctioned off and formulate the rules governing the allocation of new radio frequencies.

"We first have to inventory the frequencies that have already been issued out and see whether these are actually being utilized or not," he told The STAR.

In the case of the 3G frequencies bidding, Rio said they are studying the experience of Britain and other countries which have bidded out these frequencies at very high prices. "We are using their experience to come up with the IRR. And work has already been started," he said.

In Europe, for instance, telecommunications companies paid $120 billion for 3G licenses and will spend another $80 billion for infrastructure.