House Minority Leader 4Ps Party-list Rep. Marcelino Libanan

Citing the importance of oversight, House Minority Leader 4Ps Party-list Rep. Marcelino Libanan thumbed down the National Economic and Development Authority (NEDA) proposal to scrap the legislative franchise requirement for telecommunications companies.

“There is absolutely no way that Congress will give up its power to closely supervise the telecommunications sector, which is heavily imbued with public interest,” Libanan said in a statement Sunday, Feb. 18.

“We are determined to exercise our oversight powers to ensure the supply of dependable and affordable telecommunications services, including Internet services, to the public at all times,” underscored the House leader.

In a recent policy note, NEDA pitched the removal of the legislative franchise requirement for telecommunications firms as a way to attract more players and foster stronger competition that could improve services.

“The dual licensing process could have a disproportionate negative impact on these small players, potentially influencing market entry dynamics,” NEDA said.

But Libanan noted that Congress had actually granted dozens of franchises to new telecommunications firms over the years.

“However, instead of raising more capital to grow their businesses, many of these telecommunications firms merely sold themselves to either PLDT Inc. or Globe Telecom Inc., particularly before the enactment of the law that prohibited anti-competitive mergers and acquisitions,” explained the former Eastern Samar lone district congressman.

At present, every telecommunications company must obtain a franchise from Congress, which also enjoys the power to amend, extend, or revoke every franchise.

As the sitting minority leader, Libanan is an ex-officio voting member of the House Committee on Legislative Franchises, which grants the operating franchise of utilities and other entities.

Libanan maintained that Philippine radio airwaves belong to the State and to the public.

The State, through Congress and the National Telecommunications Commission (NTC), merely assigns certain frequencies to telecommunications firms, subject to user fees, according to Libanan.

Among the telecommunications firms that were acquired by PLDT in the past were Digital Telecommunications Philippines Inc. of the Gokongwei family and Connectivity Unlimited Resource Enterprise Inc. of the late businessman Roberto Ongpin.

Globe, meanwhile, acquired competitors Bayan Telecommunications Inc. (Bayantel) and Isla Communications Inc. (Islacom).

Business magnate Ramon Ang’s San Miguel Corp. (SMC) also ended up selling its telecommunications assets under Vega Telecom Inc. to PLDT and Globe in 2016.

“Let’s face it. Telecommunications is an extremely capital intensive business that requires massive investments over several years. But this should not discourage resolute new players who have the wherewithal to compete,” Libanan said.