Mobile firm threatens to let go of 3G licenses

A MAJOR telecommunications firm said it may abandon its third generation (3G) frequencies awarded to them if the National Telecommunications Commission (NTC) pushes through with the bidding of licenses and franchise for 3G operators.

Globe Telecoms announced the move after Congress recently invalidated the contract awarded to 3G license holders and to conduct a bidding because government is incurring losses amounting to P15 billion to P25 billion as a result of the way the NTC is handling the awarding of the licenses.

It is actually a violation of the sacred constitutional precept of separation of powers as Congress has no business meddling in the sole and exclusive power of the regulator in granting of frequencies and authorities to operate in the telecommunications industry,” Globe said in its position paper submitted to the NTC.

Last November 22, NTC directed mobile phone providers – Smart Communications Inc., Globe Telecom, Digital Telecommunications Philippines Inc. and Connectivity Unlimited Resources Enterprises to submit their comments within 10 days from receipt of the order.

Citing the case of Europe, Globe said because of the inability of the operators to deliver against the roll-out and commercial obligations as well as severe financial woes due to hefty premiums, many licenses had to be returned.

“Telco operators like Telefonica Moviles in Austria, Orange in Sweden and the two Norwegian operators, Sonera and Tele2 returned their license,” Globe said adding that Mobilcom was next to leave the German 3G arena, after cutting jobs and teetering on the verge of bankruptcy.

Moreover, Globe said Congress has no technical expertise and experience to justify its intention to replace its decision and opinion on matters purely within the realm of expertise of the NTC.

“The House should instead accord due respect of the sound discretion and decision of the commission on matters entrusted with the regulation of activities coming under the special and technical training and knowledge of such agency,” it added.

Globe said the House “is wrong in adopting the public auction of 3G frequencies by citing the experiences of other countries.”

“House Resolution 190 and kindred resolutions are just what we need to scare and drive away investors. House Resolution 190 is a prescription for disaster, just what the Philippines needs like a bullet hole in the head,” Globe said.

“If an auction had pushed through, supposing already that applicants were willing to bet on an already exorbitant and unrealistic tripling of the minimum bid at P1.2 million for each band, then total proceeds could only run to P6.5 billion. Then the P15 to P25 billion windfall suggested by some members of Congress in several fora and memoranda is purely speculative and without solid substantiation,” the company added.

Source-  us.rd.yahoo  Wireless Mobile Telecom