PCC says no to optional surrender of frequency clause in 3rd telco TOR

The competition watchdog intends to require the third telecom industry player to return its assigned radio frequencies if it becomes “related” to any telco giant, unlike the current proposal that would have made this optional.

This is among the recommendations made by the Philippine Competition Commission (PCC) to the draft terms of reference (TOR) in selecting the third telco player.

Under the draft, returning the assigned radio frequencies is “voluntary” on the part of the new market player. In PCC’s recommendation, however, this becomes mandatory.

In part, PCC’s recommendation read that the new player “shall mandatorily return to the NTC (National Telecommunications Commission) the assigned radio frequencies without condition.”

This would apply if the third player becomes a “related party” to either Globe Telecom, Inc. or PLDT Inc., or in the case it becomes an affiliate, subsidiary, or it will have company officials with possible conflict of interest.

The mandatory return of the frequencies would apply, according to PCC’s inputs, even if it the company has already surpassed its commitment period of more than five years.

This comes as PCC is currently entangled in a legal row with telco giants Globe and PLDT. This row, which has already reached the Supreme Court, stemmed from PCC’s bid to review the duopoly’s buyout of San Miguel Corp.’s telco assets.

PCC still cannot review the transaction, as its probing eyes are blocked by the legal row. In the case of the prospective third telco player, however, PCC is willing to have a compromise.

PCC said it would no longer require the participating entities bidding for the third telco slot to notify PCC for a possible competition review, but only if its inputs would make their way to the final TOR.

“However, in the absence of the foregoing inputs in the terms of reference, PCC would be constrained to pursue a regular review of the transaction,” PCC said.