Third telco must spend at least P40B annually —DICT’s draft terms

Companies vying for the third telecommunications slot in the Philippines must shell out at least P40 billion a year, according to the draft terms of reference released by the Department of Information and Communications Technology (DICT) on Tuesday.

The terms of reference for the selection process noted that the telco must meet three specific criteria, based on a five year “commitment period.”

It will be scored on each item as follows:

• 40 percent for national population coverage

• 20 percent for minimum broadband speed

• 40 percent for annual capital and operational expenditures

The third telco player must be able to fulfill the yearly the minimum requirements of:

• at least 30 percent national population coverage

• at least 5 megabits per second (Mbps) minimum average broadband speed

• P40 billion for capital and operational expenditures

It will get additional points if it exceeds the minimum requirements, but the points will be stopped once it reaches the maximum requirements of:

• 70 percent national population coverage

• 45 Mbps average broadband speed

• P130.0 billion of capital and operational expenditures

The selection documents will be made available by the National Telecommunications Commission (NTC) for P1 million each.

Draft TOR on New Major Player Selection Process by GMA News Online on Scribd

Prospective participants, bearing the proper documents, may attend the pre-selection information session—with the date to be set by the selection committee.

The draft terms of reference will still undergo public consultations starting next week as part of a market study, and its provisions may be modified in the process, the DICT said.

Earlier this month, the department belied claims that the third telco initiative was “dead”— noting that initiative will push through. —Jon Viktor Cabuenas/VDS, GMA News