PHILIPPINE LONG DISTANCE TELEPHONE CO pressrelease
Regarding the 700 MHz Frequency Band
It is unfortunate that NTC Director Cabarios made misleading unofficial and personal statements regarding the true state of the 700 MHz radio frequency band in the country and the procedure involved in the repurposing of the use of radio frequencies under NTC rules and regulations particularly as a result of technological advancements and the consequent emerging global regulatory and commercial practices.
These statements have created confusion in the minds of local and foreign investors who have been closely following developments in the Philippine telecommunication sector.
Strangely, while stating that the issue now surrounding the 700 MHz radio frequency band is a quasi-judicial matter (referring obviously to the quasi-judicial function of the Commission en banc), Director Cabarios, whose department's function is purely administrative in nature, expressed unofficial and personal biased statements in favor of the current holders of the 700 MHz radio frequency in clear and wanton disregard of applicable laws and regulations covering the repurposing of the use of radio frequencies.
Worse, he made these statements despite being fully aware of the pendency of the applications of Smart Communications Inc. and Smart Broadband, Inc. before the Commission en banc since 2008 for an equitable allocation of the 700 MHz radio frequency band for mobile telecommunication use. Director Cabarrios, therefore, prejudged the merits of these applications and preempted the decision of the Commission en banc on these matters in clear and wanton disregard of the applicable rules and procedures of the Commission.
These applications have become even more urgent in light of the more recent harmonization initiatives and actions taken by the Asia Pacific Telecommunity and the International Telecommunication Union, to which the Philippines are active members, for the repurposing of the 700 MHz radio frequency band from broadcast use to international mobile telecommunication use.
In the World Radiocommunication Conference (WRC-15) held in Geneva last week, the ITU formally moved to allocate the 700 MHz band (specifically 694-790 MHz to the global mobile industry.
ITU officials specifically stated that this move was taken to help bridge the digital divide, pointing out that the long range of radio over the 700 MHz band will be especially beneficial for underserved, rural areas.
These initiatives and actions underscore the globally recognized value of the 700 MHz radio frequency band in providing more cost efficient mobile internet access, at much faster speeds, and with superior coverage and better in-building penetration at a time of unprecedented global mobile data usage and growth.
Thus, Director Cabarios, if he had his way, would, without any legal and equitable basis, seek to deny these technological and commercial benefits from the current millions of subscribers of Smart and other mobile telecommunication operators.
Furthermore, Director Cabarios would deny the Government the opportunity and ability to auction this valuable radio frequency band (dubbed globally as the 'digital dividend') and raise much needed government revenues as has been done in many countries including Australia.
Director Cabarios conveniently omitted to clarify that the Philippine Government had occasion to reallocate 3G radio frequencies to existing and new mobile telecommunication operators in 2005, and in the process generate hundreds of millions of Pesos in revenues for the Philippine Government.
Director Cabarrios also created the misperception that existing mobile telecommunication operators can no longer apply for, and be given equitable allocation of, additional and new radio frequencies even when needed by the demands of the public service.
For these reasons, we have referred the statements of Director Cabarios to our legal counsel for appropriate judicial and administrative actions.
ATTY. RAY C. ESPINOSA
Head, Regulatory Affairs and Policy
Philippine Long Distance Telephone Company
PLDT is the leading telecommunications service provider in the Philippines. Through its principal business groups - fixed line, wireless and others - PLDT offers a wide range of telecommunications services across the Philippines' most extensive fiber optic backbone and fixed line and cellular networks.
PLDT is listed on the Philippine Stock Exchange (PSE:TEL) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE:PHI). PLDT has one of the largest market capitalizations among Philippine-listed companies.
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