Proposed telco TOR tweaked
Telcos wanting to vie for the third player slot must service at least 50 percent of Filipino population at the end of a five-year commitment period, latest draft rules show.
New draft terms of reference (TOR) released Wednesday revised the national population coverage criteria, which refers to the participant’s committed network reach, to a minimum of 10 percent per year from the previous 30 percent.
At the maximum, the prospective third telco should cover 50 percent during the first year up to 90 percent by the fifth year.
Eliseo Rio, acting chief of the Department of Information and Communications Technology, told reporters that the requirement was changed after potential bidders complained that it would be hard to meet a 30-percent minimum.
The revised TOR also raises the technical capability requirement to 10 years of “provisioning, delivery and operations of telecommunications services … on a national scale” from five years previously.
“This requirement will make the third telco better compete with Globe and Smart who both have more than 20 years experience,” Rio said.
Under the highest committed level of service approach, the government will use a point system to identify the new major player that will challenge the PDLT-Globe duopoly.
Capital expenditures as well as national population coverage will account for 40 percent each of the total score while the minimum average broadband speed has been given a 20 percent weight.
Converge backs out
In a related development, prospective third telco Converge ICT Solutions has backed down from its pursuing its bid but said it would continue with expansion plans aimed at allowing it to be more competitive.
“Not now. Let the government intervene first,” Converge CEO Dennis Uy told reporters on Wednesday when asked about the company’s third telco ambitions.
The company, he said, will instead spend $1.8 billion over the next five years to bolster its fiber internet business.
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