Nation stories
Lawmakers buck foreigners? entry into telecom trade

TWO lawmakers yesterday warned the National Telecommunications Commission against allowing foreign ownership of mobile phone content providers, because this is against the Constitution.

Reps. Rufino Biazon of Muntinlupa and Teddy Casi?o of Bayan Muna party-list said the agency?s plan also involves national security issues.

As public utility, telecom companies including their content providers should be accountable for the kind of information disseminated to the public, Biazon said.

Companies wholly owned by foreigners do not have the same level of public accountability compared to their local counterparts, he pointed out.

Mobile phone content includes news and information, applications such as music, ring tones, logos, video clips, wallpapers and electronic games.

While the NTC is still conducting hearings on the issue, there is a draft circular the agency has crafted in favor of the entry of 100-percent foreign-owned firms into the mobile content market in the country.

The plan, according to the agency, is aimed at opening up the market to foreign firms to spur competition and bring about lower prices for the consumers.

In a separate interview, Casi?o said the issue involves constitutional question because such firms are considered as public utilities and thus should adhere to the 60-40 Filipino to foreign ownership provision.

?Definitely there is a constitutional issue here. And we will raise that,? Casi?o said, although he said that so far he has not seen the NTC draft circular. Casi?o said the move will prejudice Filipino IT firms which may not be able to compete if 100-percent foreign-owned firms are allowed to operate in the mobile phone content market.

According to reports the agency only requires potential applicants to submit a valid registration from the Securities and Exchange Commission or from the Trade Department and their articles of incorporation, as well as a lease agreement with duly enfranchised and certificated public telecommunications entity. Roy Pelovello

 

Thursday, January 22, 2009
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