(NAR) VOL. 11 NO.4 / OCT. – DEC. 2000
WHEREAS, the radio frequency spectrum is a
scarce public resource, and there is a need for a transparent, fair, and
economically efficient procedure that shall expedite its allocation to
service providers who will use it efficiently and effectively to meet
public demand for telecommunications services;
WHEREAS,
international 3rd Generation (“3G”) standards technology is the family
of compatible mobile wireless technologies that the International
Telecommunication Union has approved for terrestrial radio interface,
and that will be adopted globally for full systems harmonization,
resulting in considerable interest and demand for 3G spectrum
frequencies;
WHEREAS, not all 2nd Generation (“2G”)
frequencies allocated by the National Radio Frequency Allocation Table
(“NRFAT”) for mobile telecommunications systems have been allocated to
current 2G mobile networks;
WHEREAS, under Executive Order
No. 546 dated July 23, 1979, the National Telecommunications Commission
(“NTC”) is vested with the functions to “grant permits for the use of
radio frequencies for wireless telephone and telegraph systems and radio
communication systems”, and “sub-allocate series of frequencies of
bands allocated by the International Telecommunications Union to the
specific services”;
WHEREAS, under NTC Memorandum Circular
No. 3-3-96 “MC 3-3-96”), the allocation of radio frequencies is subject
to (a) the periodic review of the NRFAT, (b) consultation with the
industry and/or affected parties, (c) consistency with the International
Table of Radio Frequency Allocation, and with national priorities, (d)
customer demand and radio frequency planning studies, and (e)
allocations reserved for customer access services, broadcast services,
maritime, aeronautical and other safety services, military and
government radio stations;
WHEREAS, spectrum auctions in
other countries show that well-designed auctions offer a more
transparent, fair, and economically efficient option for allocating
select frequencies;
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, hereby direct and order, as follows:
SECTION 1. Institutionalizing, Radio Frequency Auctions.
The radio frequency spectrum, including 3G radio frequency spectrum,
and other parts of the radio frequency spectrum not yet allocated at the
time of this order’s effectivity, shall be allocated through auction,
subject to the terms and conditions as approved by the Joint Committee
formed herewith.
SECTION 2. Formation of a Joint Committee.
A three-member committee is hereby created to promulgate guidelines, as
well as manage and supervise the allocation and auction of radio
frequency spectra. The Committee shall be composed of the Commissioner
of the National Telecommunications Commission (NTC), and shall have one
member from the Department of Transportation and Communication (DOTC),
and one from the Economic Coordinating Council (ECC).
Decisions of the Joint Committee shall be determined by a majority vote of its members.
SECTION 3. Powers and Functions of the Committee. For each set of spectrum auctions, the Joint Committee shall have the following functions and responsibilities:
a) | Within
sixty (60) days from the effectivity of this order, promulgate bidding
guidelines that will cover, among others, the following concerns:
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i) | designate the actual frequencies of the license to be auctioned off |
ii) | prescribe
the terms and conditions of each license, including the obligation to
provide local exchange carrier service or its equivalent, as well as the
number of years for which the license is granted |
iii) | set the indicative or floor price for each license |
iv) | instruct on the use or transfer of the auction proceeds
|
b) | formulate the rules and regulations governing the allocation of new radio frequencies
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c) | manage and supervise the frequency auction process to be conducted
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d) | contract the services of financial and/or technical advisers of proven expertise in the allocation of radio spectrum frequencies
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e) | if necessary, create a working committee and/or secretariat that will facilitate the tasks of the Committee. |
SECTION 4. Implementation.
The NTC, the DOTC, the ECC and other appropriate government
instrumentalities are hereby directed to take all the necessary steps to
implement the purposes and objectives of this Executive Order.
SECTION 5. Repealing Clause.
All executive orders, administrative orders, and other executive
issuances, including Memorandum Circulars from the National
Telecommunications Commission, inconsistent with this order are hereby
repealed, modified, or amended accordingly.
SECTION 6. Effectivity Clause. This order shall take effect immediately.
DONE in the City of Manila, this 31st day of October in the Year of our Lord, Two Thousand.
(Sgd.) JOSEPH EJERCITO ESTRADA
By the President:
(Sgd.) RONALDO B. ZAMORAExecutive Secretary