A ranking official of the telecommunications regulator is now under fire for supposedly preempting the decision of the National Telecommunications Commission (NTC) on the pending petitions of Smart Communications Inc. for the reallocation of a frequency band now being contested due to its commercial and technical properties.
Ray C. Espinosa, who heads Philippine Long Distance Telephone Co.’s (PLDT) regulatory affairs and policies office, said his group is studying the possibility of seeking administrative and judicial sanctions against NTC Director Edgardo V. Cabarios, who said reallocating the 700-megahertz (MHz) band would require a quasi-judicial procedure, a painfully long process that could go on for years.
“Strangely, while stating that the issue now surrounding the 700-MHz radio frequency band is a quasi-judicial matter—referring obviously to the quasi-judicial function of the commission en banc—Director Cabarios, whose department’s function is purely administrative in nature, expressed unofficial and personal biased statements in favor of the current holders of the 700-MHz radio frequency in clear and wanton disregard of applicable laws and regulations covering the repurposing of the use of radio frequencies,” Espinosa said in a media briefing on Tuesday.
He accused the director of taking sides on the issue, despite the pending petitions submitted by Smart in 2008 for the reallocation of the band, all frequencies of which already allotted to San Miguel Corp.’s telecommunications units.
“Worse, he made these statements despite being fully aware of the pendency of the applications of Smart Communications Inc. and Smart Broadband Inc. before the commission en banc since 2008 for an equitable allocation of the 700-MHz radio frequency band for mobile telecommunication use,” the PLDT official said. “Director Cabarios, therefore, prejudged the merits of these applications and preempted the decision of the commission en banc on these matters in clear and wanton disregard of the applicable rules and procedures of the commission.”
For his part, Cabarios clarified that his statements were made, not on a personal account, but on behalf of the telecommunications regulator.
“I was just replying to the media’s questions, and all of my answers are based on facts. I’m not speaking on personal grounds, I am speaking on behalf of the commission,” he said. “I was given the go signal to answer questions.”
Globe Telecom Inc., seems to share a different view on the matter, with a spokesman saying that the legal aspects of the reallocation of the frequency band shall only be discussed within the company’s leadership
“Our position is clear: We will continue to pursue the 700-MHz band, and we will continue to urge the government to harmonize the frequency,” Globe Spokesman Yolanda C. Crisanto said in a phone interview. The case stemmed from reports on the director’s comments on the 700-MHz issue raised earlier by PLDT and Globe. In a November 10 interview with the BusinessMirror, Cabarios said the process of reallocating the frequencies held by San Miguel would be too long a procedure, and would require the filing of a case for a recall.
Espinosa, however, took this as a negative, saying that the comments of Cabarios “would deny the government the opportunity and ability to auction this valuable radio frequency band and raise much- needed government revenues as has been done in many countries including Australia.”
The applications of Smart, he said, have become even more urgent in light of the more recent harmonization initiatives and actions taken by the Asia Pacific Telecommunity and the International Telecommunication Union (ITU), to which the Philip-pines are active members, for the repurposing of the 700-MHz radio frequency band from broadcast use to international mobile telecommunication use.
In the World Radiocommunication Conference (WRC-15) held in Geneva last week, the ITU formally moved to allocate the 700-MHz band—specifically 694 to 790 MHz to the global mobile industry.
ITU officials specifically stated that this move was taken to help bridge the digital divide, pointing out that the long range of radio over the 700-MHz band will be especially beneficial for underserved, rural areas.
“It goes a long way in enabling bridging of the digital divide, while fully protecting the other services currently operated in the band,” ITU Secretary-General Houlin Zhao was quoted as saying.
Telecommunications companies in the Philippines are gunning to win the right to operate the 700-MHz frequency band, as it has better coverage and farther reach. The catch, however, is that it has no capacity.
Currently, San Miguel holds the right to operate the whole band: with Liberty Telecoms Holdings Inc. holding 80 MHz; High Frequency Telecommunications with 10 MHz; and New Century Telecommunications 10 MHz. San Miguel Group also operates spectrums under the 800 MHz, 900 MHz, and 1,800 MHz bands.
The PLDT Group has the right to operate the 800 MHz, 900 MHz, 1,800 MHz and 2,100 MHz bands. Globe, on the other hand, has rights to the 900 MHz, 1,800 MHz and 2,100 MHz bands.
Telstra Corp. Ltd. is expected to debut in Manila in 2016, through San Miguel’s Bell Telecommunications Philippines Inc. It plans to invest roughly $1 billion in a wireless joint venture with the diversified conglomerate. San Miguel is expected to hold 60 percent of the said company—requiring it to invest as much as $1.5 billion—while the remainder will be held by the Australian telecommunications giant.