PLDT Inc. and Globe Telecom Inc. have asked the government to lower the spectrum user fees (SUF) on telecom services to support the increased investment on network expansions.
The two firms welcomed the passage of House Bill (HB) 9851 or the “Zero SUF for Telcos Using Wi-Fi Act” which aims to reduce to zero the SUF paid by telcos to the national government for using WiFi or wireless data networks.
This is seen to broaden the public’s access to WiFi technology and eventually lower the cost of telecom services for the public.
In addition, the telcos reiterated their call for the reduction and/or rationalization of SUF for other spectrum/frequencies.
In a statement, PLDT and its wireless unit Smart Communications Inc. said the group will most likely end with roughly the same P2.4-billion expenditure on SUF for 2021.
Currently, PLDT said spectrum fees imposed on public telecommunication entities are becoming unreasonable and excessive.
“It is our position that SUF must be set at modest levels with a view to recovering only the regulator’s spectrum management costs as mandated by law. In other jurisdictions, national regulatory authorities are even required to publish reports that set out the total sum of charges collected, and the total administrative expenditures incurred to justify the SUF imposed by government,” PLDT said.
PLDT added the increased demand from mobile users puts a strain on networks, necessitating the use of more spectrum. Increased spectrum use directly corresponds to an increase in spectrum prices, both of which are rising.
Operators will struggle to make the significant investments required to support dense 4G and 5G networks, it said.
HB 9851 was approved by the Lower House and transmitted to the Senate last September 22 — an effort by legislators to regulate exorbitant SUFs levied on telecom firms which, in turn, is expected to help “promote the acceleration of internet use in the country and the expansion of WiFi technology and infrastructure in unserved and underserved areas.”
