Philippines’s National Telecommunications Commission (NTC) plans to auction the surrendered spectrum frequencies from San Miguel Corporation in the coming year. The Regulator hopes to attract a third player into the telecom sector with this auction.
Spectrum in 700Mhz, 2500-2700Mhz, 800Mhz and 3400-3500Mhz would be available for auction next year. Several groups, including Converge ICT Solutions and Now Telecom, have already shown interest, reports Rappler.
San Miguel was in talks with Australia’s Telstra Corporation for the launch of the third service provider in the country. However the talks failed and the company sold off its telco assets to PLDT and Globe for P69.1 billion.
The third player in the country’s telecom industry might find it tough to sustain. The growth of the two players, Philippine Long Distance Telephone Company and Globe Telecom has stagnated since 2012. In this scenario the third player will need to differentiate itself by launching really innovative products to appeal to the end consumer.
Besides the third player might also face problems from spectrum since experts believe that not all the spectrum is ready to use since it has guard bands. Amount of spectrum allocated to the service provider impacts the network cost, customer experience and ability to offer rich communication services.