Senate panel OKs DITO franchise renewal for delivering on pledges

The Senate committee on public services on Wednesday approved the 25-year franchise renewal application of DITO Telecommunity Corp., after the new major telco player showed proof it had delivered on its service commitments. 

During the virtual hearing presided by panel chair Senator Grace Poe, Senator Juan Miguel Zubiri moved to approve DITO's franchise application as well as other franchise applicants and brought the matter to the plenary.

Poe, in turn, congratulated the telcos and other broadcast companies who applied for a legislative franchise.

In December last year, Poe stood firm that the Senate committee on public services will not grant DITO’s application without proof that it was able to deliver on its commitments. 

DITO's original franchise under Mindanao Islamic Telephone Co. is set to expire in April 2023.

During the hearing, the National Telecommunications Commission (NTC) Deputy Commissioner confirmed to the Senate panel that DITO delivered on its commitments for its first year of operations —37.03% national population coverage and an average speed of 27 megabits per second (Mbps).

DITO risked losing its P24-billion performance bond should it fail to meet its commitments.

Last month, the NTC, citing the technical audit report conducted by independent auditor R.G. Manabat and Co., announced that DITO’s first-year national population coverage reached 37.48% or 37,845,315 based on the 2015 national census population of 100.983 million, reaching coverage of 8,609 barangays.

Also, the report indicated that the minimum average broadband speeds were recorded at 85.9 Mbps for 4G and 507.5 Mbps for 5G. This was faster near base stations at 102.4 Mbps for 4G and 769.1 Mbps for 5G while those far from base stations experienced speeds of 64.4 Mbps for 4G and 316. Mbps for 5G.

On Monday, the duopoly challenger launched its commercial services in 15 key areas in the Visayas and Mindanao, saying that Metro Manila will have to wait a few more weeks to avail of its services. 

In the same hearing, DITO chief technology officer Rodolfo Santiago said: “We are more than 40% already. Right now, we are approaching 45%.”

Santiago also expressed optimism that the new major telco will reach 51% population coverage in July, in time for its second technical audit.

For his part, DITO chief administrative officer Adel Tamano said that as of March 9, 2021 there are already 22,748 subscriber signups for the telco and it has already sold 7,586 SIM cards.

Asked by Poe where can consumers buy DITO SIMs, Tamano said it is currently available in the following malls: SM Consolacion, SM City Cebu, Gaisano Grand Manduae Centro, Ayala Center-Cebu Business Park, Gaisano Mall of Davao-Bajada, SM Ecoland, City Mall-Ilustre.

In August 2020, the House of Representatives approved on third and final reading the measure seeking to renew for another 25 years DITO's franchise. 

Apart from DITO, the Senate committee on Public Services approved the franchise applications of telecommunications companies Instant Data Inc. and Transpacific Broadband Group International Inc.

Also, the body gave a go-signal to the applications of broadcast franchise of Rolin Broadcasting Enterprise Inc., Blockbuster Broadcasting System Inc., Tagbilaran Broadcasting System Inc., Davao City Radio Broadcasting Stations, Servotron Industries Inc., University of the Philippines System, Christian Music Power Inc., Allied Broadcasting Center Inc., Palawan Broadcasting Corp., St. Jude Thaddeus Institute Technology Inc., Good News Sorsogon Foundation Inc., Baycomms Broadcasting Corp., and Highlands Broadcasting Corp. —LBG, GMA News