THE vice chairman of the House Committee on Ways and Means has urged his colleagues to pass a measure that would penalize telecommunication companies allegedly hoarding frequencies.
Rep. Dakila Carlo E. Cua of the Lone District of Quirino said the passage of House Bill (HB) 8134, or “An Act Systematizing Spectrum User Fees Imposed Against Radio Frequency Bands,” would pave the way for the entry of new telecommunication industry players in the country.
Under HB 8134, which Cua filed last August, the government would impose hefty fees on users and holders of frequency bands nationwide.
Cua said the duopoly of the telecommunication industry has discouraged new players to enter the local market.
“In the US, which has the same limited amount of spectrum, frequencies are assigned to many players. They have four major telco companies and many other smaller telco companies,” Cua said in a statement on Wednesday.
“Here in the Philippines, the majority of the frequencies are assigned to two players and the companies under their control. They have been granted more than enough frequencies, but have failed to provide satisfactory service to Filipinos,” he said.
Under HB 8134, a telco company will be charged a premium on the spectrum user fees when the band is found to be underutilized, Cua said.
The National Telecommunications Commission (NTC) would be empowered “to initiate call back or recall proceedings on unused, unutilized, and/or underutilized frequencies.” To exercise this power, Cua said the NTC would be “given appropriate funding to upgrade its capabilities to measure usage of frequencies.”
“By breaking the control of the two players over the country’s frequencies, we increase competition and welcome new players. We expect this will result in improved service quality, faster Internet speeds and lower prices,” Cua said.
Under the bill, telecommunication companies are charged 20 times the prescribed rate of imposed Spectrum User Fees (SUF) on their second and succeeding licensed frequencies.
Telecommunication firms would be charged twice the imposed SUF on all their assigned frequencies that remains unused, unutilized and/or underutilized.