Frequency rights rules drawn up
The telecom regulator has paved the way for the transfer of frequency utilisation rights.
The National Telecommunications Commission (NTC) has finished the first draft of regulations governing the transfer of frequency rights and joint utilisation of frequencies, in a bid to maximise frequency utilisation. The regulations will be applied only to the telecom sector. An NTC source said that in the absence of the National Broad- casting Commission (NBC), the NTC could not award new spectrums for new telecom services. Therefore, the NTC must work out regulations to solve the problem. On Friday the NTC will hold a public hearing on the draft. The frequency allocation law mandates both the NTC and NBC to jointly manage the telecom and broadcasting bands and prescribe their uses. According to the draft, although each spectrum is granted exclusively to each holder, it could change hands if permitted by the NTC as a necessity. But the new rights holder has to use the frequency according to its original purpose, not for something new. The transfer must not hurt existing subscribers to the frequency or market competition. The rights holder has to tell the NTC when it plans to transfer its rights, and an objection to such a transfer by any party is allowed. A source from a telecom operator said he would ask the NTC to state clearly if the regulations would be applied to all private concession holders. The NTC might request either the old or the new frequency rights holder to pay the transfer fee to the NTC. The fee can be either 5 per cent of the net present value of that transferred spectrum or 5 per cent of its appraised value. The NTC has also permitted rights holders to allow others to utilise their frequency, according to the draft. One rights holder can completely take up the frequency of the other holder but the latter can protest such a move. The regulator might permit a rights holder to completely utilise the frequency of another if it was found that the latter has failed to maximise use of the frequency for the interest of the country, or to promote fair competition. The NTC will also set up a committee to draw up a plan to take back some frequencies in circulation for re-allocation.
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