Two US satellite firms eye PHL entry as NTC applications advance

By Ashley Erika O. Jose, Reporter

TWO US-BASED satellite service providers are expected to begin operations in the Philippines this year, with their applications now in advanced stages at the National Telecommunications Commission (NTC), according to the Department of Information and Communications Technology (DICT).

“There are two US-based companies that are interested (to operate here). They are currently under application at the NTC. One of these two has already conducted testing,” DICT Secretary Henry Rhoel R. Aguda told reporters on the sidelines of a briefing on Wednesday.

He said one applicant may secure regulatory approval within the month following the completion of testing activities, while the other company is expected to launch services within the year.

“Both of them are satellites, probably GIDA (geographically isolated and disadvantaged areas) will benefit from this. But these are big companies, you already know their branding,” he said.

The entry of additional satellite operators follows the enactment of the Konektadong Pinoy Act, or the Open Access in Data Transmission Act, which liberalized participation in the data transmission sector by removing the legislative franchise requirement for qualified industry participants.

The law, which lapsed into law in August last year, aims to streamline permitting and licensing processes and promote infrastructure sharing to improve competition and connectivity services. Its implementing rules and regulations were signed in November.

Under the measure, data transmission industry participants (DTIPs) may construct, establish, maintain, lease, or operate data transmission networks and facilities without securing a congressional franchise.

Mr. Aguda said the NTC is currently processing the migration of existing license holders into the DTIP framework and is expected to begin acting on foreign applicants thereafter.

Last year, the DICT said seven foreign firms had expressed interest in entering the Philippine telecommunications market, offering mobile, fiber, and satellite services.

Separately, Mr. Aguda said the recently approved National ICT Development Agenda (NICTDA) would accelerate the rollout of the government’s National Fiber Backbone project, which is expected to reach Mindanao by July.

He said the approval of the NICTDA also unlocked grants worth $1.7 million and $2.5 million from international funding organizations, which are currently being processed. The funding will support planning and mapping activities for the fiberization of Luzon and Mindanao.

In August last year, the DICT said it had begun building the final phases of the National Fiber Backbone project. The agency had earlier secured a $287.24-million World Bank loan to accelerate phases 4 and 5 of the initiative, which is expected to improve digital connectivity in underserved areas, particularly in the Visayas and Mindanao.