Smart presses NTC to stop Globe from using Altimax frequencies

MANILA, Philippines - Smart Communications is pressing the National Telecommunications Commission (NTC) to stop rival Globe Telecom’s alleged illegal use of Altimax Broadcasting Co.’s frequencies after the latter failed to attend a scheduled hearing on this issue yesterday.

 “Both Globe/Innove and Altimax filed a motion for postponement, saying they were not ready to respond to our complaint even though they had been given more than adequate time to do so. That is hardly surprising considering that Altimax has failed to build anything in the last 10 years,” PLDT and Smart spokesperson Ramon Isberto said.

 “For our part, we are asking the NTC to immediately issue a cease and desist order and thus stop Altimax and Globe from using frequencies that they have no legal authority to use,” he added.

The NTC has reset the hearing for Oct. 19 on Smart’s complaint asking the commission to revoke the provisional authority issued to Altimax to operate a Multichannel Multipoint Distribution System (MMDS) service.

It also petitioned the commission to recall the 30 Mhz of radio frequencies granted to Altimax (in the 2597-2627MHz band) and to make these available to qualified interested parties through competitive public bidding.

Smart further asked the NTC to impose the appropriate administrative sanctions/penalties upon Altimax and Globe/Innove.

Smart said Globe had acquired the use of the broadcast frequencies of Altimax through a lease agreement in 2009, and that in exchange for fees amounting to P160 million in 2009 and 2010, the Ayala-owned telecom firm has been using these frequencies to provide wireless broadband Internet service using the WiMax technology.

In its petition, Smart said this lease agreement was illegal and invalid because Altimax had long lost its legislative franchise because of its persistent failure to set up, operate and maintain an MMDS service as specified by its congressional franchise and under its provisional authority.

Under Republic Act 8607, failure by Altimax to roll out the MMDS network within three years of the grant of the franchise and one year from the issuance of its provisional authority would result in its franchise being deemed ipso facto revoked, Smart noted.

 “To date, more than 10 years after it was granted a provisional Authority by the NTC, Altimax has failed to roll out its MMDS service. Considering the franchise is effectively revoked, Altimax does not have authority to lease its frequencies to Globe, much less allow Globe to use it in purposes other than its intended use to provide broadcast services,” Isberto said.

He added that Section 12 of RA 8607 states that Altimax shall not lease or assign the franchise or the rights and privileges acquired under to any person or corporation without prior approval of Congress.

In short, Altimax leased out frequencies it does not own, for a purpose different from that for which it was originally granted, in a manner that defied both the law and rules of the NTC and Congress, he pointed out.