DICT urges 3rd telco player to invest on ‘fixed internet’

FILE: The Philippines needs at least 67,000 cell sites to provide additional radio frequencies that are vital in the transmission of data, enable phone calls, send and receive text messages, and browse the Internet on mobile phones. (Photo: Emilian Robert Vicol/Flickr)

MANILA — The Department of Information and Communications Technology (DICT) is urging telecommunications companies interested to become the third major player in the industry to invest in the installation of fixed lines to further improve internet service in the country.

“The main reason why we have one of the slowest and expensive Internet access in the region is that most of us, if not all, connect to the Internet via Globe and Smart mobile networks. But they have only 20,000 cell sites, such that around more than 5,000 subscribers share a tower when the more ideal ratio should be one tower per 1,000 subscribers. We need at least 67,000 cell sites to just compare with Vietnam,” DICT officer-in-charge Usec. Eliseo Rio said in a social media post Tuesday.

The Philippines needs at least 67,000 cell sites to provide additional radio frequencies that are vital in the transmission of data, enable phone calls, send and receive text messages, and browse the Internet on mobile phones.

“While the duopoly got more frequencies from SMC (San Miguel Corporation), there was no real improvement on their QoS (quality of service), because they lack towers. And Globe and Smart capacity to build towers is only around 2,000 a year. So the immediate solution to improve Internet speed and cost is to provide more fixed line access,” he added.

The DICT official explained that having more access to fixed lines would decongest the mobile networks of both telco players improving their services.

Rio said a prospective third telco player should invest on fiber optic cables to deliver fast and affordable Internet to remote areas of the country “where small BPOs can exist, on-line government services will be available, health and education services will greatly improve, etc.”

“In the meantime, let Globe and Smart provide the mobile services but with improved QoS because the fix access will decongest their inadequate number of towers,” Rio added.

The DICT is awaiting for the signature of the President that will streamline the process of granting local permits for the installation of the cell towers.

The country’s telecommunications companies have cited the numerous permits from national government agencies (NGAs) and local government units (LGUs) as one of the reasons for the slow Internet speed in the country.

The government is planning to partner with the private sector to build towers that may be leased to the telcos enabling them to acquire more mobile frequencies due to better allocation process.

The DICT and the National Telecommunications Commission (NTC) are preparing the guidelines for the assignment of frequencies to a third telco player.

“We will make sure that it goes to an organization with the financial and technical clout to really be able to compete and not merely be gobbled up by the duopoly. In fact, we will put that as a condition for granting frequencies, that they will be returned to the government, if and when the organization is bought or merges with the Globe or PLDT/Smart,” Rio said.

Presidential Communications Operations Office (PCOO) Secretary Martin Andanar said in a radio interview over the weekend that China Telecom (CT) was chosen by the Chinese government to invest in the local telco industry.

The Chinese telco firm needs to partner with a local telco firm to comply with the Philippine Constitution that sets a 40 percent cap on foreign ownership on certain sectors including telecommunications.

China Telecom operates the biggest wireless network and the largest fixed-line network in China.

It is the third largest mobile network in China with total assets exceeding USD 105.78 billion.

Companies that have expressed willingness to challenge PLDT and Globe include Philippine Telegraph & Telephone Corp. (PT&T). (PNA)