The Philippine Competition Commission (PCC) is pushing for the creation of more independent tower companies that will build cell towers and other communication infrastructures that may be shared by all telcos.
This, as the PCC expressed support for the Department of Information and Communications Technology’s (DICT) common tower policy as this will improve the delivery of communication services by mobile network providers.
“The PCC supports efforts to establish a comprehensive policy for the sharing of telecommunication infrastructure in the country, allowing public telecommunication entities (PTEs) to “share” in the separately owned infrastructure of other PTEs in order to improve network coverage in developing the capacity of the country’s information and communications technology industry,” the competition watchdog body said in its position paper released to the media on Tuesday.
“Having shared towers ensures access to the necessary infrastructure for mobile telecommunications services. This would level the playing field for smaller players and new entrants that do not have the capital for building a broad network of towers to effectively compete. Without such Tower Companies, smaller players and new entrants can only provide wireless telecommunications services if given access to the existing towers of the dominant integrated telecommunications services providers,” it added.
The PCC said allowing the entry of more tower companies will benefit consumers and promote competition in the industry as it expressed concern on the proposed guidelines of the common tower policy by the DICT, which limits to only two independent tower companies registered with the National Telecommunications Commission (NTC) to build and share their towers for use of existing telco firms – as well as the new major player in the industry within the first four years of its implementation.
“The PCC emphasizes that entry or potential entry to the market ensures the existence of competitive pressure, which drives the business to be more efficient, aggressive and innovative for the benefit of consumers. Thus, imposing an entry barrier by limiting the number of players in the market would have adverse effects on market competition,” according to the PCC.
It said that the business of constructing towers does not require “economies of scale or economies of scope” to ensure financial viability, as tower companies can build individual towers and earn from rentals paid by telcos wishing to propagate their services.
The commission further stated that the government must implement measures that will expedite the issuance of permits for the construction of communication facilities by telcos.(PNA)
