LOOK: DICT draft rules on selection of 3rd telco player

MANILA, Philippines – The Department of Information and Communications Technology has released its latest draft guidelines on the selection of the country's 3rd major telecommunications player.

The DICT said on Wednesday, August 8, that it released the proposed memorandum circular after the oversight committee, in consultation with stakeholders, agreed on the use of the Highest Committed Level of Service (HCLoS) as a mode for the selection process during its July 20 meeting.

DICT Acting Secretary Eliseo Rio Jr earlier threatened to resign if the HCLoS mode would not be used in selecting the new telco player. Under this mode  – which is also the preference of ICT advocates – the next player will be chosen based on the quality of coverage, internet speed, and investment.

Under the HCLoS model, the 3rd telco must provide at least 5 Megabits per second of internet speed and must have at least P40 billion in capital and operational expenditure per year over a 5-year commitment period.

The draft rules also propose the following minimum and maximum national population coverage: 10% to 50% (first year),  20% to 60% (second year), 30% to 70% (third year), 40% to 80% (fourth year), and 50% to 90% (fifth year). 

Under the draft rules, the selection criteria are the following: national population coverage (40%), minimum average broadband speed (20%), and annual capital and operational expenditure (40%) computed annually over a 5-year commitment period.

The National Telecommunications Commission will form a selection committee to oversee the process.

The DICT released the draft guidelines ahead of the public hearing on the proposed memorandum circular on August 23, at the Novotel Manila in Cubao, Quezon City.

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