DICT ensures common tower project to be free from legal issues

The Department of Information and Communications Technology (DICT) may release a memorandum of agreement (MoA) on the common tower initiative after industry giants PLDT and Globe Telecom flagged legal issues.

DICT acting chief Eliseo Rio told The Manila Times on Sunday the government would craft a MoA instead of a memorandum circular or a department order to ensure the common tower policy was free from any legal impediments.

“An agreement … that would be beneficial to all stakeholders,” particularly the telcos, which would be the main clients of tower companies (towercos), he said.

“The only way to reach such an agreement is a dialogue, where all positions will be considered, and coming out with a policy that is acceptable to all,” Rio added.

The government official noted that under the agreement, the DICT may offer its network infrastructure, like towers, real estate, buildings, and assist on securing right of way and permits to establish towers.

The DICT acting chief also stressed that he would have the final word on what rules would be included in the policy or agreement.

Existing telcos PLDT and Globe both expressed disapproval on the draft guidelines crafted by Presidential Adviser on Economic Affairs and Information Technology Ramon Jacinto.

Last month, Jacinto proposed that only two towercos would be registered by the National Telecommunications Commission (NTC) in the first four years of the implementation of the policy.

He also suggested that telcos cannot freely build their own towers as they can only act once the accredited towercos fail to respond to their request within 30 days.

In a position paper submitted by PLDT’s wireless unit Smart Communications last Oct. 5, it argued that the draft rules violate its franchise, stressing the DICT and NTC have no power to overule Congress.

It added towercos will also face the same bureaucracy problems in building towers.

“This very tedious process of securing permits is really the main culprit behind the lack of telecommunications infrastructure in the Philippines. Inasmuch as (telcos) are able and willing to expand their networks and build more cell sites, permitting issues are hampering their efforts,” it said.

Smart also claimed the common tower initiative must be open to more players, including telco firms, or this would only lead to a duopoly.
Globe’s position paper, meanwhile, has not been released to the media but the telco has criticized the draft rules.

“Limiting the building of towers to two-player independent tower companies unfairly discriminates against the other models and is contrary to best practices,” Globe general legal counsel Froilan Castelo was earlier quoted in a statement.

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