The Senate Committee on Public Services endorsed Tuesday for plenary deliberation and approval fresh franchises for 3 telecommunication companies, including a “new player” to stir up competition seen to benefit end-users.
In sponsoring their plenary approval, Senator Grace Poe, panel chairperson, said the 3 telcos are expected to “bridge the digital divide by making telecommunications services available, accessible and affordable to more Filipinos.”
She added that the Senate panel, in endorsing the entry a new telco player and the renewal of two existing franchises, sought to “encourage competition, drive companies to provide better service, and meet end-user expectations.”
Poe confirmed that among those lined up for plenary vote were:
- House Bill (HB) 7615, under Committee Report No. 207, seeking to grant the franchise of Instant Data Inc. which aims to deliver communications technology through internet infrastructure, and future proof IP voice/video;
- HB 8551, under Committee Report No. 208, renewing the franchise of Transpacific Broadband Group International Inc. (TBGI). TBGI is a PSE-licensed telecommunications operator with PEZA in the Clark Special Economic Zone. They also have monitoring and operations center in Mandaluyong, and a training facility in Dasmariñas, Cavite. More importantly, Poe added, TGBI’s network development plan focuses on marginalized schools and communities. And;
- HB 7332, under Committee Report No. 206, which seeks to renew the franchise of Dito Telecommunity Corp. Dito, formerly Mislatel, was selected as the new major player in the Philippine telecommunications market.
Poe said Dito was given a 5-year network rollout to realize its commitment to provide at least 55 mbps of mobile data connectivity to at least 84 percent of the country’s population.
She recalled that last March 8, Dito was able to launch commercially in various areas in Visayas and Mindanao, with good connection reports although it could improve its accessibility to serve the market it targets.
“We are hopeful that the entrance of Dito in the telecommunications market would spur the competition for a more affordable and better internet and mobile services available to more Filipinos,” Poe said.
“Nevertheless, we also recognize that the grant of franchise is just the tip of the iceberg and we need to pursue several reforms like the long overdue amendment to Republic Act 7925 or the Public Telecommunications Policy Act, and the passage of the Better Internet Act, and Open Access in Data Transmission Act.”
Moreover, the Senator affirmed that “we made sure to standardize the contents of all franchises regardless of popularity and extent of coverage,” adding that “in view of our mandate and responsibility to issue franchises, we scrutinized and carefully studied each of them.”
“In fact, in our effort to continuously improve it, we introduced a new amendment on the dispersal of ownership to all franchises, except the non-stock and non-profit corporations,” said Poe, noting that, “we changed the offering requirements from 30 percent of common stocks to 30 percent of outstanding capital stocks following the legal precedent in Roy vs. Herbosa where the Court adopted that Filipino ownership must be applied to both total number of outstanding shares of stock entitled to vote; and total number of outstanding shares of stock, whether or not entitled to vote.”
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