MANILA - The Philippine Competition Commission (PCC) on Tuesday warned against approving the 'common tower policy' proposed by presidential economic adviser Ramon Jacinto.
The policy, wherein existing telcos divest their cellular tower assets to companies whose only role is to maintain them and build new towers, is meant to facilitate the entry of a new major telecommunications player.
But the PCC, in a statement, said the proposed limitation on the number of players that can participate to just two entities would have adverse effects on market competition.
The commission said the proposal also lacked a clear definition of a tower company.
"Approving the draft Common Tower Policy in its current form, with its limitation on the number of players that can participate, and the lack of a clear definition of a Tower Company, may raise competition concerns and be in direct contravention to the open access regime that the government is advocating for," the PCC said.
Department of Information and Communications Technology Officer-in-Charge Eliseo Rio said they will abide by the PCC recommendation.
"We have to follow PCC's recommendation because if we don't, PCC will always, in other words, bring us to task," Rio said in an interview Tuesday. - with a report from Warren De Guzman, ABS-CBN News