WITH the Department of Information Technology and Communication (DITC) finalizing the guidelines on the proposed common tower policy before the end of this year, we look forward to the start early next year of the program of tower construction to boost the nation’s mobile telecommunications services.
For months now, there has been a lively discussion on a proposal for the organization of two – and only two – independent and private companies to build cellsite towers in the country. The Philippines now has only 17,000 such towers serving a nation of about 108 million people, compared to Vietnam, with 96 million people, which has 65,000 towers. This explains why Internet services in this country have so lagged behind those of other countries.
Presidential Adviser for Economic Affairs and Information Technology Communications Ramon Jacinto had proposed that two independent mobile network operators be appointed for the exclusive purpose of building cell towers. The idea of a “duopoly” of tower builders did not sit well with many sectors. Members of Congress, among them Sen. Grace Poe, Deputy Speaker Prospero Pichay, and Rep. Johnny Pimentel, stressed that the need for towers is so great that two companies would not have the means to do it all.
Globe Telecom said what are needed are measures to ease the process of acquiring permits for the construction of cell towers. It and Smart Communications had found this problem of government red tape a major obstacle in their own efforts to expand their services.
The Philippine Competition Commission (PCC) has now added its voice to the efforts to establish a comprehensive policy for the sharing of telecommunication infrastructure in the country. “Having shared towers ensures access to the necessary infrastructure for mobile telecommunications services. This will level the playing field for smaller players and new entrants that do not have the capital for building a broad network of towers to effectively compete,” it said.
But it expressed concern over the proposal to have only two independent tower companies, considering the magnitude of the need. “Limiting the number of players in the market would have adverse effects on market competition,” the PCC said. It stressed the importance of “competitive pressure which drives the business to be more efficient, aggressive, and innovative for the benefit of consumers.”
The DICT, with its new Secretary Gregorio Honasan, is expected to proceed with the common tower policy, without the two-company limit earlier proposed. The next step is to cut down the bureaucratic red tape that has long delayed the issuance of local government permits.
The department should now move to solve this problem so that the building of needed towers to improve the nation’s overall telecommunications services can proceed early in this coming year.
