Stakeholders prefer ‘highest committed level of service’ in selecting 3rd telco

The highest committed level service formula for the selection of the third telecommunications player has been chosen by stakeholders as their preferred more of selection, the Department of Information and Communications Technology (DICT) said.

DICT Acting Secretary Eliseo Rio Jr. noted most of the 15 telecommunications companies present voted for the highest committed level of service. He was citing the results of an impromptu survey the department ran during the third stakeholders consultation on the entry of new major telco player on Friday.

75% of 15 public telcos present in the consultation votes for the highest committed level service option for the selection of 3rd telco player | via @Ted_Cordero pic.twitter.com/XzhJriMN5M

— GMA News (@gmanews) July 6, 2018

Nearly all of stakeholders present—embassies, local government units, national government agencies, consumer groups, consultants, and companies—voted for the highest committed level of service option.

The public - comprised of LGUs, embassies, consumer groups, private sector - voted for the highest committed level of service option for the selection of 3rd telco player | via @Ted_Cordero pic.twitter.com/gOHwDEx9Ny

— GMA News (@gmanews) July 6, 2018

A representative of Now Corp. subsidiary Now Telecom is concerned about the auction mode, saying it will simply add to the financial burden of the third telco. He asked not to be named for reasons of propriety.

Another stakeholder, who requested anonymity, said the highest bid formula guarantees that the bidder has more than enough money to win the spectrum.

Rio emphasized that results of the survey showed that only two out of 15 companies prefer the auction mode.

“If we force the auction, siguro wala pang dalawa will join ... I can’t give you their names but they don’t have foreign partners ...”

Results of public consultations will be presented to the Oversight Committee sometime next week. DICT targets to release the final draft terms of reference in August.

“Then this will be subjected to another public hearing. But this time it will ... be formal. It has the same weight when you are testifying in court and everything now will again improve the terms of reference until it becomes final. It would come out roughly 30 days after the first publication,” Rio said

“The 15 days after the first publication will be the series of public hearings. ‘Pag natapos na ‘yung public hearing then effective na ito. That will start the bidding process. The contenders now can buy the bidding documents and within two months they can come up with their bids. That is the time they will form their consortium with their foreign partners, investors.”

The DICT released two draft terms of references on the selection of third telco player.

A draft joint memorandum circular by the Oversight Committee—composed of the National Security Adviser, Department of Finance, National Telecommunications Commission, and DICT—stated that participant that offers the highest amount of bid for five years shall be selected as the new telco player.

The circular is separate from the draft terms the DICT released on June 26, which banks on the highest committed level of service formula.

The highest committed level of service requires companies vying for the third telco slot to shell out at least P40 billion a year. —VDS, GMA News