Globe Telecom first to file for 3G license

Leading cellular phone operator Globe Telecom has formally filed yesterday with the National Telecommunications Commission (NTC) its application for the grant of 3G (third-generation) frequency bands, the first Philippine company to apply for the 3G license in mobile communications.

According to the NTC, there are seven companies vying for the five 3G licenses and frequencies that will be made available. These are existing cellular operators Globe, Smart Communications and Digitel Mobile which are automatically prequalified, as well as four other companies wishing to enter the highly competitive cellular mobile telephony market for the first time.

The four newcomers are AZ Communications owned by businessman Antonio ‘Tonyboy’ Cojuangco; Multi Media Telephone Inc. (formerly owned by the De Venecia family but was reportedly sold to a group of businessmen which includes former Home Cable executive Fritz Server and ICTSI’s Enrique Razon); CURE which is identified with ISM Communications controlled by former Trade Minister Roberto Ongpin; and digital trunk radio company Next Mobile.

Razon has been denying his participation in Multi Media Telephone Inc., saying he would rather focus on port operator ICTSI but NTC insiders as well as sources from the telecoms industry insist that he is part of the group that acquired Multi Media (Broadband Phils.) from the De Venecias.

Globe revealed that the launching by its major shareholder SingTel of 3G in Singapore will fortify the former’s foray into third generation cellular technology, adding that it has arranged 3G roaming agreements with operators in Japan, Hong Kong, and Singapore whereby Globe subscribers with 3G handsets can experience and subscribe to certain 3G services in these countries.

It added that the company is part of the Bridge Mobile Alliance, whose other members include several operators that have deployed 3G networks in their respective countries – CSL Hong Kong, Maxis Malaysia, Optus Australia, and Taiwan Mobile. "There is thus a substantial pool of 3G technical knowhow that Globe can readily harness and leverage in its own 3G venture, in addition to the fact that cellular subscribers will be served adequately on a wider regional basis because of this alliance," Globe informed the NTC.

Unlike Globe, Smart, however, remains adamant to venture into 3G. Smart legal head Rogelio Quevedo told The STAR that "the Philippine economy is not yet ready for 3G. Our subscribers cannot afford the handsets yet. Nokia’s $100 3G handsets will not be available until next year."

Globe particularly requested for the 1920-1940 megahertz (MHz), 2110-2130 MHz paired radio frequency bands, with the 1960-1980 MHz, 2150-2170 MHz as second priority.

Globe said the 3G frequency spectra are needed for the planned upgrade of its current CMTS (cellular mobile telephone system) services to 3G. Globe’s CMTS currently uses the second generation (2G) global system for mobile communications or GSM technology as well as the 2.5G or the general packet radio system (GPRS). The company’s network is also 2.75G or EDGE-capable.

Globe said it will remit to the NTC payment of the corresponding spectrum user fees and post a performance bond equivalent to P300 million in compliance with the rules and regulations on the allocation and assignment of 3G radio frequency bands.

The requirements presented by Globe to the NTC are: Globe and its subsidiary Innove’s track record in the operation of cellular mobile and other telecommunications systems; its five-year 3G network rollout plan; schedule of rates for 3G services; congressional franchises; certification of 70:30 debt-to-equity ratio; proof of CMTS/3G technical capability; and a notarized undertaking to interconnect with other networks, to share network facilities, to negotiate roaming agreements, to abide by NTC’s legal terms and conditions and other related undertakings.

Globe told the NTC that it will begin the installation and construction of the 3G network and facilities not later than 12 months from the award of the 3G spectrum. NTC plans to award the frequencies early next year.

The company added that it will endeavor to cover at least 80 percent of provincial capital cities and towns and 80 percent of chartered cities with 60 months from date of award of the 3G spectrum. Globe said it will start 3G commercial operations not later than 30 months from award of the frequency.

In its application, Globe also attached a schedule of rates for the different 3G services, which include value-added services such as MMS downloading of audio/visual file and video, video call, video conference, browsing, streaming, network gaming, video sharing, among others, as well as the basic services like voicecall, voice conferencing, and text messaging.

In July this year, Globe already successfully completed its first video calls over its 3G trial network, allowing not only voice but also full-motion real-time videos between two mobile subscribers. In doing so, Globe became the first Philippine operator to accomplish such feat using 3G trial permit and frequencies from the NTC.

Globe said that with 3G technology and services, subscribers will not only hear, but see loved ones – both here and abroad as well as watch the news, TV shows, or sports highlights while mobile. Users can, likewise, choose to download and listen to the latest music, wherever and whenever the mood strikes them, among other applications.

Under the NTC rules governing the issuance of 3G licenses and frequencies, there will be five licenses that will be issued. If more than five applicants are able to prove their technical, financial, and legal capabilities, then the NTC will resort to a bidding.