NTC extends Bayan’s mobile permit till 2013

The National Telecommunications Commission (NTC) has extended Bayan Telecommunications permit to operate a cellular mobile telephone system (CMTS) till 2013. However, the Philippine regulatory authority has warned Bayan that it must continue to build out its mobile network over the next two years to avoid ‘stiff’ sanctions. According to reports, a four-page order signed by the NTC commissioners states that in order to allow Bayan to continue building up its CMTS nationwide, it is recommended that its provisional authority be extended until November 3, 2013; subject further to the condition that should Bayan fail to continue building up its CMTS network within two years from date thereof, the provisional authority shall be deemed cancelled or revoked. Bayan was granted provisional authority on May 3, 2000 which has been extended twice, up to November 5, 2005 and November 3, 2010. As per sources, Bayan claims they are currently working on a proof of concept with several vendors for LTE in order to utilize its allocated frequencies in the 1800 megahertz band. Bayan reportedly told the NTC on July 28 that it has commenced installing cell sites for CMTS services. To date, it has put up 428 cell sites nationwide and has signed up 178,552 subscribers for the wireless landline service. According to NTC Director, Edgardo Cabarios, when Bayan was authorized in 2000, Extelcom questioned the authority before the Court of Appeals. During this time, Digitel was authorized to operate a CMTS network and started offering cellular service. Bayan could not offer anything because of a court case.

AT&T seeks to increase wireless broadband with T-Mobile buy

AT&T is looking to expand its mobile broadband and wireless service in New Mexico, among other places, though the U.S. Department of Justice has sued to block the company's acquisition of T-Mobile. According to information from the Justice Department, the proposed $39 billion transaction would result in "higher prices, poorer quality services, fewer choices and fewer innovative products for millions of American consumers." The department filed an anti-trust lawsuit in federal District Court Aug. 31 to block the sale. The Department of Justice argues that consumers, including those in rural areas and with low incomes, would suffer if the merger isn't blocked. "Mobile wireless telecommunications services play a critical role in the way Americans live and work, with more than 300 million feature phones, smart phones, data cards, tablets and other mobile wireless devices in service today," a department release states. "Four nationwide providers of these services - AT&T, T-Mobile, Sprint and Verizon - account for more than 90 percent of mobile wireless connections." The Justice Department also argues that T-Mobile, according to information from that company, "has been responsible for a number of significant 'firsts' in the U.S. mobile wireless industry, including the first handset using the Android operating system, Blackberry wireless email" and others. However, AT&T Services President of Arizona and New Mexico Jerry Fuentes said in a Sept. 1 interview with The Taos News that the market after the T-Mobile acquisition "will still be hugely competitive." He said prices are declining despite mergers, such as AT&T's $2.35 billion acquisition of Alltel markets last year, and the state of New Mexico is poised to benefit more than others if the T-Mobile sale is allowed to proceed. AT&T announced its intention to acquire T-Mobile in March, according to information from AT&T, with the deal creating "significant consumer benefits," including: Expanded 4G service to more than 97 percent of the U.S. population Jobs resulting from an additional $8 billion in private infrastructure investment Better mobile broadband access in rural communities, as well as voice and data service improvements However, the Justice Department claims it gave "serious consideration to the efficiencies that the merging parties claim would result from the transaction." "The department concluded AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction's substantial adverse impact on competition and consumers," a department release states. "Moreover, the department said that AT&T could obtain substantially the same network enhancements that it claims will come from the transaction if it simply invested in its own network without eliminating a close competitor." Fuentes said AT&T is seeking to keep up with consumers' demands for data service, and 4G service "eats up more spectrum." "We're having a capacity issue," he said. He said T-Mobile towers are largely compatible with AT&T's, so the transition would be completed relatively quickly, though he said AT&T is precluded from talking to T-Mobile until the merger is complete. Fuentes said the Federal Communications Commission must still approve the merger. If it is approved, he said it will take time, three to seven years to reach AT&T's 4G goals.

Gov’t broadband project attempts a comeback

The Department of Science and Technology (DOST) is in the news once again with its bold – and perhaps naïve – proposal for a government broadband network or GBN, a new version of the ill-fated National Broadband Network (NBN) project that rocked the previous Arroyo administration. According to DOST secretary Mario Montejo, the new broadband initiative, with an estimated cost of P800 million, is far cheaper than the $300-million contract that the Arroyo regime tried to carry out. The DOST chief argued that since the government is paying P2 billion in telephone bills anyway, then it might be better if the government could just create its own network to reduce, if not totally eliminate, its communication expenses. I don’t know if Montejo is hallucinating or not, but the good secretary seems to be misguided on this one. As previously noted by industry observers, the DOST appears to be ignoring the lessons of the past. In particular, it has been pointed out that the government should not go to an area where the private sector is deemed more capable and effective. I both admire and detest Montejo’s audacity – since going on-board, he has made attention-grabbing initiatives such as the ambitious monorail project at the University of the Philippines and recommending the downgrading of the Commission on Information and Communications Technology (CICT) into a mere office under the DOST. Montejo is perhaps the most influential secretary that the DOST has had so far – he undoubtedly has the ears and complete confidence of the president. As someone who was plucked from outside of the DOST bureaucracy, he displays the creativity and bravura typical of a private sector guy. But Montejo appears to be acting on impulse and is listening only to a select group of friends, some of whom he has brought in to the DOST. To be honest, the secretary’s recent actions and projects have somewhat left me wondering if he’s really up to the job. I hope he proves me wrong. The hovering cloud If the number of press launches would serve as a gauge, I can say that cloud computing is indeed taking off in the country. From the big telcos to small start-ups, from private to public, from global brands to homegrown firms – everyone’s trying to jump on the bandwagon. Last week, these companies all launched their cloud offerings: IP-Converge, VMware, Hitachi Data Systems, and Morph Labs. A week before that, fierce rivals PLDT and Globe Telecom also unveiled their respective cloud solutions. Speaking of VMware, the virtualization firm recently announced the establishment of its local office. On hand to announce the opening was Ed Lenta, general manager for VMware in Asean. As the regional boss, Lenta was also tasked to look after the Philippine market. But unofficial accounts have it that IT veteran Manny Portugal, who is currently connected with IBM Philippines, is being tipped as the incoming country manager for VMware’s local unit. On ICANN and cyber-crime bill Last week was also a proud moment for IT executive Judith Duavit-Vasquez when she formally announced in a press conference her selection as the first Filipino and Asian female to serve in the board of the Internet Corporation of Assigned Names and Numbers (ICANN). Duavit-Vazquez will start her three-year term at the upcoming ICANN general assembly on Oct. 28, 2011. After failing to advance many times in Congress, the proposed law on cyber-crime is finally being tackled in the Senate. Last Monday, Sept. 12, bill sponsor Sen. Edgardo Angara had the chance to defend the proposed legislation in the Senate plenary hall. Information and Communications Technology Office (ICTO) executive director Louis Casambre and his deputy Monchito Ibrahim supplied information from the gallery to Angara as he took questions from Senators Miriam Defensor-Santiago and Tito Sotto. The senators, however, failed to wrap up the interpellation as Sen. Pia Cayetano requested that her questions be taken up in the next session. The House of the Representatives has already passed its counterpart version of the bill.