CATBALOGAN CITY — House of Representatives Minority Leader and 4Ps party-list Rep. Marcelino “Nonoy” Libanan has opposed the National Economic and Development Authority’s (NEDA) suggestion to remove the legislative franchise requirement for telecommunications companies.
Libanan stated, “There is absolutely no way that Congress will give up its power to closely supervise the telecommunications sector, which is heavily imbued with public interest.” He emphasized Congress’s determination to oversee the sector to ensure the supply of dependable and affordable telecommunications services, including internet services.
Currently, every telecommunications company must secure a franchise from Congress, which also has the authority to amend, extend, or revoke each franchise. Libanan asserted that Philippine radio airwaves belong to the State and the public, and the State assigns certain frequencies to telecommunications firms through Congress and the National Telecommunications Commission, subject to user fees.
As a lawyer and former chairperson of the House committee on justice, Libanan stressed the importance of Congress’s oversight in the telecommunications sector. He highlighted the case of Converge ICT Solutions Inc. and DITO Telecommunity Corp., which recently signed an agreement to share select terrestrial and submarine fiber optic cable assets to expand their telecommunications services’ coverage.
NEDA had recommended removing the legislative franchise requirement to attract more players and foster stronger competition. However, Libanan noted that many new telecommunications firms, instead of raising more capital to grow their businesses, sold themselves to PLDT Inc. or Globe Telecom Inc., particularly before the enactment of laws prohibiting anti-competitive mergers and acquisitions.
Despite Congress granting dozens of franchises to new telecommunications firms over the years, the trend of mergers and acquisitions has limited the entry of new players. Among the telecommunications firms acquired by PLDT were Digital Telecommunications Philippines Inc. and Connectivity Unlimited Resource Enterprise Inc., while Globe acquired Bayan Telecommunications Inc. (Bayantel) and Isla Communications Inc. (Islacom). Ramon Ang’s San Miguel Corp. (SMC) also sold its telecommunications assets under Vega Telecom Inc. to PLDT and Globe in 2016.
