NTC issue 3G license proposal

September 29, 2004

The National Telecommunications Commission (NTC) of the Philippines has published the memorandum on the rules and regulation on the allocation and assignment of spectrum for 3G mobile phone services.

NTC identified five radio frequency bands for 3G networks:

Band A : 1920 - 1935MHz/2110 - 2125MHz
Band B : 1935 - 1950MHz/2125 - 2140MHz
Band C : 1950 - 1965MHz/2140 - 2155MHz
Band D : 1885 - 1900MHz/1965 - 1980MHz
Band E : 2010 - 2025MHz

The bands will be allocated to three WCDMA players, one CDMA2000 player and one TDD player among public telecommunications entities whom must reach minimum requirements to qualify for a 3G license. NTC hopes the move would foster more effective competition through the reduction of the probability of formation of cartels.

All applicants for the 3G service shall post performance bond equivalent to PHP 300 million. (£1 = PHP 91.78)

Each qualified applicant must make an upfront payment of PHP 450 million but NTC will conduct bidding with a bid floor price of PHP 450 million if the number of qualified applicants exceed the allocated 3G frequency bands.

NTC proposed spectrum user fees (SUF) of PHP 100 million for each band and an additional SUF of PHP 2 million will be imposed on each 3G network operator for every 100,000 additional subscribers/users in excess of the first 4 million subscribers/users.

Successful operators must begin construction of their 3G network no later than 18 months from date of award and start commercial operation not later than thirty months from date of award. Their 3G network must also cover at minimum 80% of the provincial capital cities and towns and 80% of the chartered cities within five years of winning the their license.

NTC will conduct public hearings on the issuance of 3G radio spectrum and has called on all interested parties to submit comments and suggestions by October 15.