Adoption of International 3G Standards
- International 3rd Generation (3G) technology standards are approved by the International Telecommunication Union (ITU).
- These standards represent globally harmonized mobile wireless technologies.
- There is considerable demand for 3G spectrum frequencies due to global adoption.
Status of 2G Frequency Allocation
- Not all 2nd Generation (2G) frequency allocations per the National Radio Frequency Allocation Table (NRFAT) are assigned to existing 2G networks.
Authority of the National Telecommunications Commission (NTC)
- Under Executive Order No. 546 (1979), NTC is empowered to grant permits for radio frequency use including wireless telephone, telegraph, and radio communications.
- NTC is also vested with the authority to sub-allocate frequency bands allocated by the ITU to specific services.
Criteria for Radio Frequency Allocation
- According to NTC Memorandum Circular No. 3-3-96, frequency allocation is subject to:
- Periodic NRFAT review
- Consultation with industry and affected parties
- Consistency with international allocation tables and national priorities
- Customer demand and engineering studies
- Reservation of allocations for services such as broadcast, maritime, aeronautical, safety, military and government use.
Rationale for Spectrum Auctions
- Spectrum auctions in other nations have demonstrated transparency, fairness, and economic efficiency.
- Auctions are considered an optimal means for allocating selected radio frequencies.
Institutionalization of Radio Frequency Auctions
- All radio frequency spectrum, including 3G bands and unallocated frequencies, shall be allocated through auction.
- Auctions are subject to guidelines set by a Joint Committee.
Formation and Composition of the Joint Committee
- A three-member Joint Committee is established:
- Commissioner of the NTC
- Representative from the Department of Transportation and Communication (DOTC)
- Representative from the Economic Coordinating Council (ECC)
- Committee decisions are made by majority vote.
Powers and Responsibilities of the Joint Committee
- Within 60 days from the order's effectivity, the Committee must promulgate bidding guidelines covering:
- Designation of specific frequencies for auction
- Terms and conditions of licenses, including service obligations and license duration
- Setting indicative or floor prices
- Management of auction proceeds
- Formulate rules and regulations for new frequency allocations.
- Manage and supervise the auction process.
- Contract financial and technical advisers with proven expertise.
- Create working committees or secretariats as necessary.
Implementation Directive
- The NTC, DOTC, ECC, and other government agencies are mandated to undertake necessary actions to implement the Executive Order's objectives.
Repealing Clause
- All previous executive and administrative issuances, including NTC Memorandum Circulars inconsistent with this Order, are repealed, modified, or amended accordingly.
Effectivity
- The Executive Order takes effect immediately upon issuance.