Philippine telecom commission may face 3G lawsuit

25.05.2006
Members of the House of Representatives' committees on oversight and ICT are urging the National Telecommunications Commission (NTC) to nullify the 3G licenses it granted to four telecommunication firms or face charges in court.

In the third hearing on the issue, Rep. Danilo Suarez (Quezon, 3rd district, LP), chairman of the oversight committee, agreed with former NTC commissioner Rep. Simeon Kintanar (Cebu, 2nd district, NPC), head of the ICT committee, and other members of their respective committees, to submit a congressional committee report giving NTC a 30-day ultimatum to nullify the 3G licenses of four telecommunication companies -- Smart Communications Inc., Globe Telecoms, Digital Telecommunications Phils. Inc., and Connectivity Unlimited Resources Enterprise Inc.

The two panels also proposed a new payment scheme for telecommunications companies in acquiring 3G licenses.

Suarez said they would only ask NTC to nullify the licenses since Congress has no power to nullify them, but warned that if the commission does not do so, they would subject it to an anti-graft case. 'We would only ask them (to void the licenses) because we don't want to charge them with conspiracy. The worst scenario will be to go to court,' he said.

The move, according to the two lawmakers, is aimed at preventing the government from losing P15 billion to P26 billion in revenues as a result of NTC's failure to conduct a public bidding on 3G licenses to acquire the required frequencies. By law, frequencies are considered government property.