Bayan nixes entry of new player in telecom sector

MANILA, Philippines - Lopez-owned Bayan Telecommunications has opposed the proposed entry of a newcomer in the telecommunications industry, arguing that the sector is already congested.

Bayan asked the National Telecommunications Commission (NTC) to dismiss Schutzengel Telecom Inc.’s application for a permit to install, operate and maintain a third generation mobile telecommunications system (3G) and to offer 3G services.

Bayan said NTC has already authorized eight carriers for the operation of cellular mobile telephone service (CMTS) in the country, thereby leaving no room for another aspiring telecom provider.

Existing CMTS operators include Smart Communications, Globe Telecom, Digital Telecommunications Philippines Inc., Smart-subsidiary Connectivity Unlimited Resource Enterprise (CURE), Express Telecommunications Co. (Extelcom), Multi-Media Telephony Inc., Nextel Communications Philippines Inc. and Bayan.

“There now exists a cramped competition for CMTS subscribers among the existing operators,” Bayantel said, adding that Schutzengel has not even proven its technical and financial capacity to carry out the services it applied for.

Bayan also pointed that the allocation of additional frequencies should not be granted to new applicants such as Schutzengel as these were “solely” meant for the expansion of present CMTS carriers.

It said there will be no place for a ninth player in terms of frequency bands available, adding that even the existing CMTS carriers are already clamoring for additional frequency allocations due to network congestion.

Bayan stressed that that approval of Schutzengel’s application may lead to “needless, wasteful and uneconomic duplication of existing telecommunications services resulting in a waste of valuable resources.”

Last month, Schutzengel asked the NTC to grant it a license to operate and maintain a nationwide 3G mobile telecommunications system and offer 3G telecommunication services.

The firm said it was “legally, technically, and financially capable and qualified” for the service, adding that it would finance its 3G operations from a combination of internally-generated funds, suppliers’ credits, loans and other forms of financing.

It also informed the NTC in its application that it could operate within any of the frequency bandwidth for the 3G standard.