Beruflich Dokumente
Kultur Dokumente
and
REVISED DRAFT MEMORANDUM CIRCULAR
on
THE ALLOCATION AND ASSIGNMENT OF
3G LICENSES AND RADIO FREQUENCY BANDS
As part of the continuing administrative process leading to the
formulation of the proper regulatory policy in the assignment of thirdgeneration mobile communications technology (3G, for brevity) licenses
and frequencies, the National Telecommunications Commission (the
Commission, for brevity) released the second draft of the proposed
memorandum circular on the allocation and assignment of 3G licenses
and radio frequency bands (the second draft, for brevity) and again
invited comments thereon from the public. Taking into account the
various comments submitted in response to the issuance of the second
draft, the Commission hereby issues the following memorandum to
further clarify the said concerns, which shall hereinafter be treated
sequentially.
QUALIFICATION CRITERIA
?? Roll-Out Obligations Under Executive Order No. 109
Current cellular mobile telephone system (CMTS, for brevity)
operators argue that of the current CMTS operators, only those which
have completely fulfilled their obligations to roll out local exchange
carrier (LEC, for brevity) lines, as mandated by Executive Order No. 109
and Republic Act No. 7925, should be allowed to qualify for the
assignment of 3G licenses and frequencies and that the obligations to be
imposed on new players ought to carry the same cost as those mandated
on existing CMTS operators.
It bears pointing out, however, that NTC Memorandum Circular
11-9-93 (MC No. 11-9-93, for brevity), or the Implementing Guidelines on
the Provisions of E.O. No. 109, already governs the obligatory
provisioning of LEC services by, among others, CMTS operators. Under
Sections 30 of MC No. 11-9-93, violators thereof are subject to the
penalties provided for in Executive Order No. 59 and its implementing
?? Capitalization Requirements
One CMTS operator posits that the capitalization requirement
mandated by the second draft is inadequate considering the fact that its
estimated investments in 3G amount to US$1.2 billion. The
Commission believes, however, that the amount set forth in the second
draft, PhP400 million, would be sufficient to cover the initial
expenditures of a prospective 3G operator and the imposition of a higher
capitalization requirement would be too financially burdensome for
prospective 3G operators.
?? Mandatory Interconnection of Trunk Radio Networks
Current CMTS operators argue against the mandatory
interconnection of 3G networks with trunk radio networks because they
claim that the latter are closed user group networks. Under R.A. No.
7925, it is an avowed national policy that [A] fair and reasonable
interconnection of facilities of authorized public network operators and
other providers of telecommunications services is necessary in order to
achieve a viable, efficient, reliable and universal telecommunications
services. 1 Thus, under Section 5 (c) of the same statute, the Commission
is decreed to [M]andate a fair and reasonable interconnection of facilities
of authorized public network operators and other providers of
telecommunications services through appropriate modalities of
interconnection and at a reasonable and fair level of charges, which
make provision for the cross subsidy to unprofitable local exchange
service areas so as to promote telephone density and provide the most
extensive access to basic telecommunications services available at
affordable rates to the public.
It bears pointing out that even if they are closed user networks,
trunk radio networks are still considered as public networks and are
therefore within the contemplation of the aforequoted provisions of R.A.
No. 7925. The Commission therefore believes that the provision on the
mandatory interconnection of 3G networks with all public networks,
including trunk radio networks, should be maintained.
?? Track Record
While it is true that proof of track record in the operation of mobile
telecommunications systems, particularly of 3G networks, shall be one of
the criteria in the determination of qualified applicants, it is to be
stressed that present 2G operators are not necessarily at a disadvantage
as the requirement does not necessarily exclude experience in the
1
with separate
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410 SCRA 82
JORGE V. SARMIENTO
Deputy Commissioner