Telcos seek reduction in spectrum user fees

As the government has improved the ease of doing business in telco, the industry is asking it to work on minimizing costs next, starting with a mandatory fee requiring P5 billion yearly.

- ELIJAH FELICE ROSALES

The Philippine Chamber of Telecommunication Operators (PCTO) is pushing for the reduction, if not elimination, of spectrum user fees (SUF) that the government charges on telcos.

Telcos pay SUF to the National Telecommunications Commission (NTC) annually depending on the volume of spectrum they use and the kind of service they provide.

The industry paid almost P27 billion in SUF to the NTC from 2018 to 2022, avOrder 32 that simplified the permitting process for connectivity projects, enabling telcos to roll out faster.

"The PSAC wields significant influence on the executive to push for the lowering of SUF, and it should consider taking this on as a major public policy campaign," Ridon told The STAR.

However, Ridon warned against slashing the SUF without considering its impact on government income.

The SUF funds the P2.5 billion eraging P5.39 billion a year and growing requirement of by 12 percent annually during the period.

Telcos were slapped the highest SUF in 2022, when they were billed a combined P6.73 billion.