NTC seeks bids for last 3G license

Regulators have released the bidding rules for the last license to offer third generation or 3G mobile phone services, allowing all market players to bid amid protests from Lopez-led Bayan Telecommunications, Inc. (Bayantel). In a circular, the National Telecommunications Commission (NTC) said companies seeking to bid for the “spectrum fee" of the last 3G slot must send applications to determine eligibility. “The remaining allocated 3G frequency band shall be granted to the best qualified [bidder] who will use it efficiently and effectively to meet public demand for telecommunication service, ensure universal coverage and foster a healthy competitive environment," the commission said. It added that it would consider the applicant’s track record, rollout plan and financial soundness. Telecommunication companies were not immediately available for comment. The minimum bid price for the annual spectrum user fee is P65 million. The winning bidder must pay a performance bond equivalent to 30 percent of the rollout cost for the first two years but not below P1 billion for five years or after completing the rollout. No deadline was set by the NTC for the applications. Before, the NTC assigned 3G frequencies to companies it deemed qualified. The rules were later revised to encourage competition. Earlier, the NTC disqualified Globe Telecom, Inc., Smart Communications, Inc., Connectivity Unlimited Resource Enterprise (CURE) and Digitel Telecommunications Phils., Inc. from bidding for the slot but later reconsidered. The companies got their 3G slots in 2005. Bayantel earlier asked the NTC not to proceed with the bidding pending its suit against the regulator at the Court of Appeals regarding the last 3G slot. The company claims to be the rightful holder of the last 3G slot since it had qualified under the old rules but was passed over by the regulator. Holders of 3G slots are expected to start installing and building the 3G facilities not later than 12 months from the award date. — Emilia Narni J. David, BusinessWorld