NTC elevates dispute with Bayantel on 3G to Supreme Court

The National Telecommunications Commission (NTC) has asked the Supreme Court to overturn an appellate court injunction preventing it from awarding the country’s fifth and last third-generation or 3G mobile network license (3G). In a petition filed on its behalf by the Office of the Solicitor General, the NTC argued the order had deprived consumers of improved network service. “The NTC’s actions on the last remaining 3G frequency band are principally based on the overriding consideration of furtherance of consumer welfare, market competition and public interest," the regulator said. It added that the injunction would wreak havoc on the telecommunication industry since it had also nullified the grading system used by the regulator in awarding the first four 3G licenses. The Court of Appeals issued the injunction in favor of Lopez-led Bayan Telecommunications, Inc. (Bayantel), which questioned its disqualification from the government bidding five years ago. A 3G license allows a telecommunication firm to offer high-value services such as wireless broadband Internet. The NTC awarded four of the five available 3G licenses to Smart Communications Inc., Globe Telecom Inc., Digitel Mobile Philippines Inc. and Connectivity Unlimited Resource Enterprise. In its suit, the NTC argued that nullifying the point system it had used consequently annulled the frequency assignments of the other mobile networks. “The frequency awardees have in the meantime invested billions of pesos in their respective 3G networks and currently have countless of customers," it added. The appellate court earlier criticized the NTC’s bidding system, which it likened to a "beauty contest." The system used a 30-point grading system that evaluated companies based on track record, financial capability and technical know-how. The court noted that Bayantel had been disqualified even if the NTC had never disputed its qualifications. — NPA, GMANews.TV