Smart determined to bag last 3G frequency

MANILA, Philippines - Smart Communications Inc. is determined to get the last third generation of mobile communications technology (3G) frequency as it expects its broadband subscribers to double by the end of the year.

“Theoretically, we need more frequency that is available as broadband subscription is exploding,” Smart chief wireless advisor Orlando Vea said.

Aside from Smart, Globe Telecom has also expressed its intention to avail itself of the last 3G slot, which the government plans to dispose of via a bidding process.

Smart has over 1.3 million broadband subscribers nationwide and targets to double this number by the end of 2010. “The more users you have, the more frequency you need,” Vea said.

The National Telecommunications Commission (NTC) has revised its proposed rules for the bidding out of the last remaining 3G frequency band, allowing even existing 3G allocates to bid for it.

Aside from Smart, the other existing 3G frequency band allocattees are Globe Telecom and Digitel Mobile Philippines Inc.

The NTC has set a minimum bid price of P65 million for the annual spectrum user fee and a bid security bond of 30 percent.

Earlier, Lopez-owned Bayan Telecommunications warned the NTC against bidding out the last remaining third generation of mobile communications (3G) frequency, saying the matter is still the subject of litigation.

But the NTC argued that it is necessary to expedite the award as non-usage of the said frequency deprives prospective subscribers of easier access to services it can provide.

It noted that the government has lost approximately P300 million in potential income through spectrum user fees, at the current rate of P65 million a year, due to the non-assignment of the last 3G slot for the past five years. 

“The process was envisioned to go through open tenders as contained in Republic Act No. 7925 (Public Telecommunications Act) when demand for frequencies exceed supply as is currently the practice in most countries in the area of radio frequency spectrum assignment,” the NTC said.

The frequency band available for assignment is 1965-1975Mhz/2155-2165Mhz or 1890-1900MHz/1970-1980MHz.

Bayan legal counsel Ariel Tubayan said in a position paper submitted to the NTC that the matter of the assignment of the remaining 3G frequency band is the subject of a pending petition for review filed by the company with the Court of Appeals that questioned an NTC ruling not to award the fifth 3G slot to Bayantel.

Tubayan noted that the NTC is bent on promulgating the new 3G rules and assigning the last remaining 3G frequency band that was already the subject of a competitive selection process under NTC MC 07-08-2005, or the rules and regulations on the allocation and assignment of 3G radio frequency bands. “The commission simply cannot lawfully commence a new procedure or process to award and assign the remaining 3G frequency band,” he said.

Bayan’s counsel likewise noted that the NTC cannot adopt entirely different sets of rules and standards for purposes of assigning the same set of frequencies without violating the equal protection clause which requires the commission to apply a uniform set of criteria in assessing the credentials of all applicants for the same privileges.

He added that to proceed with the conduct of further hearings on the proposed new 3G rules is to sanction an invalid and unfair competition for the remaining 3G frequency band under a questionable set of standards and in brazen disregard of judicial processes.