CHOOSING the proposed terms of reference that favors the highest committed level of service (HCLoS) for the selection of the third telco player will result in the public gaining more than profiting from an auction.
This was how Department of Information and Communications Technology (DICT) Acting Secretary Eliseo M. Rio defended his position in the upcoming vote for the mode of implementation for the selection of the new major telco player.
“We are very confident in the viability of the HCLoS model in choosing a truly competent telco, and one that is dedicated to service and not just for profit,” Rio said.
The oversight committee, chaired by Rio, will convene on Friday to decide on which draft will be chosen as the official terms of reference (TOR) for the selection process.
Created through an administrative order from Malacañang, the committee is composed of the DICT, the Department of Finance, the Office of the Executive Secretary and the National Security Adviser.
Finance Secretary Carlos G. Dominguez III has been vocal of his stance on the selection of the third telco, being the vice chairman of an oversight committee created for the said process.
His stance has always been this: Bid out the frequencies so that the government will gain money from the transaction.
Dominguez’s argument stems from the fact that in more advanced economies, frequencies are auctioned off.
One of the two draft TORs presented to stakeholders two weeks ago spells out the rules for the auction, placing a minimum bid of P36.58 billion for a swathe of frequencies amounting to 225 megahertz of frequencies in the 700 MHz, 2100 MHz, 2.5 gigahertz, 3.3 GHz, and 3.5 GHZ bands.
The other draft, which was released days before the auction model draft, places premium on the highest committed level of service, a points-based system based on commitments on speed, coverage and capital.
The consultation resulted in a spontaneous market study, with 15 prospective bidders participating in a vote over two drafts, with 75 percent preferring the first TOR, while 16.67 percent were for the second one and 8.33 percent abstained.
“Regardless, on Friday this will be surely resolved, one way or another,” Rio said. The third telco is seen to spur competition in the market that is dominated by two incumbents: PLDT Inc. and Globe Telecom Inc.