NTC gives Bayantel 1-mo reprieve

MANILA, Philippines - The National Telecommunications Commission (NTC) has given cash-strapped Bayan Telecommunications Inc. (Bayantel) of the Lopez family a one-month reprieve to comply with the provisions on the joint use of its frequencies with Ayala-controlled Globe Telecom Inc.

NTC Commissioner Gamaliel Cordoba said the regulator has given Bayantel until Feb. 5 to comply with the condition in the provisional approval of the joint use of its frequencies with Globe.

Cordoba said Bayantel should have secured confirmation from the rehabilitation court on the joint use of the frequencies last Jan. 6.

The NTC allowed Bayantel to co-use its frequencies 1750-1760 Megahertz or 1845-1855 MHz with Globe last September on the condition that it would secure the approval of the rehabilitation court within 60 days.

However, Bayantel legal counsel Ariel Tubayan said the rehabilitation court has yet to act on the manifestation and motion seeking the confirmation of the joint use of frequencies.

Furthermore, the hearing for motion filed by Bayantel before the rehabilitation court was postponed to Jan. 23 from Dec. 13 due to the unavailability of the presiding judge.

Bayantel was seeking a two-month extension of the Jan. 6 deadline or until March 7 but the NTC only granted a one-month reprieve.

“After evaluation thereof, the Commission finds merit in your request and accordingly grants Bayantel an additional period of 30 days from Jan. 6 or until Feb. 5 within which to secure confirmation by the rehabilitation court of the joint use of frequencies,” Cordoba stated in a letter to Tubayan.

Last September, NTC allowed telecommunications providers including Bayantel and Globe to jointly use mobile phone frequencies to address the congested network resulting to a rise in the number of complaints from consumers.

NTC said it was mandated by Republic Act 7925 also known as the “Public Telecommunications Policy Act of the Philippines” to resolve the rising incidence of mobile communications complaints on blocked calls or grade of service, drop calls and signal quality.

NTC also allowed PLDT-controlled Smart Communications Inc. and sister firm Smart Broadband Inc. (SBI) to jointly use the 800Mhz, 900MHz, 1800MHz, and 2100MHz Band frequencies assigned to Smart and the 800MHz Band frequency assigned to SBI.

The regulator also allowed Smart and Digital Mobile Philippines Inc ( Digitel) to jointly use the 800Mhz, 900Mhz, 1800Mhz, 2100Mhz Band frequencies assigned to Smart and the 1800Mhz and 2100Mhz Band frequencies granted to Digitel.

NTC said the telecom providers would have to pay additional Spectrum User Fees for the joint use of the subject frequencies and should comply with the quality of service required by the government.

Last month, Globe completed a tender offer acquiring almost 100 percent of the 13.5 percent senior notes of Bayantel originally due last December 2006 as part of its efforts to acquire a significant share in the Lopez-controlled company.

Last Nov. 6, Globe announced it has commenced separate discussions with the controlling shareholders of Bayantel regarding a wide range of commercial arrangements including a potential acquisition by Globe of an equity interest in the cash-strapped company.