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Chair: Gatchalian

Sen. Zubiri

Atty. Gico
Number portability
(opens up competition)
Lock in periods
-where does it come from
-2 years is a long time, other countries 6months
-anti-competitive problems
Chair:
Co-use (thoughts on)
Atty:
San Miguel does not have the authority to use the frequency that why they
sold it to Globe and Smart
Co-use agreement- layout the agreements
Co-use of frequency
Mr. Gala:
Billing portability if merged with NP more freedom and movement between
telco players
For consideration
Chair:
Based on research, in Asia we are the only ones who does not do this
Atty:
Telcos already recovered the cost of investment
Telcos are arguing that their investment is big
Ms. Grace:
Investment of telcos-look at the profit
Top/highest before interst and tax amortization
Telcos are very profitable

Despite investment, they have profited a lot from it

PCC

1. Sanction powers
a. No decision to pursue yet of any agreement or conduct of telco
players
b. Law requires in excess of 1B before right to review
2. Promotion of competition
a. Sec 15 to impose measures on fair competition
b. Open access, network sharing, interconnection
c. If we are to impose network sharing and we only have 2 players,
benefit will be for the duoply only
3. Amend public services act
a. Enact law
b. San Miguel had a hard time getting foreign invesments because
only 40% and of potential litigations
c. If we are to get a third player, operations of the utilities should
be amended
d. Public utilities not defined in the 1987 Constitution
e. Proposed draft bill not taken up last Congress but filed this
Congress as SB 695 by Sen Aquino
4. Merger and acquisition of San Miguel
Singapore has 3 players, Indonesia 3, Thailand 3, Vietnam 3, Korean 3, Japan
3, Malaysia 3 (ASEAN)
Similar economic nature, norm to have 3 players
Potential of harm to the market and consumers
Technical presentation on pre and post-acquisition spectrum holdings
Zubiri:
Economic affairs committee
Speech on fighting the giants and working together to provide better services
NTC has to be present
PCC:
PLDT and Globe have more than enough spectrum allotments prior to the
acquisition of SMC telco assets
e.o./legislation on setting up of cell sites
on the sale frequency/co-use agreement, there should have been a more
comprehensive assessment on competition

consult with pcc on competition aspect where ntc is lacking (through e.o.)
Ms. Santos:
Spectrum frequency should be regulated by government. Government should
determine the value of these frequencies, who should use them, etc.
Term should be rights holder not that they own the spectrum frequency
use it or lose it
Transparency in spectrum allocations in other countries
NTC considers the assignment as confidential
(there is no law on prohibiting the release of these documents)
Open access would really useful
Chair:
Remain/vacantg frequencies be used?
Galla:
There should be frequency refarming
Chair:
May 30 approved and til now no significant change in quality of internet.
Galla:
PLDT and globe need spectrum so less capex pressure, no more need to build
more cell sites
Ross:
Customers point of view
Telstra was frightened because of the challenges
Attract and get the best international competition and give them the
confidence
Suggests to compel SMC to use the frequency that they bought
Allow the deal to push trhough and consummated
Galla:
Consider filing a bill all frequencies with a certain range will revert back to
the governemtn (refarming) and shall be allocated subject to a spectrum
auction supervised by the PCC and according to regulatory rules of NTC

Meeting adjourned at 1:30pm