SLaMbook

FVR warns of PLDT-Digitel deal impact on public

2011-08-26T00:57:00.000-07:00

Former President Fidel V. Ramos warns that the acquisition of Digital Telecommunications Philippines Inc. (Digitel) by telecommunications giant Philippine Long Distance Telephone Co. (PLDT) may result in a disservice to the public, noting that the deal is meant to primarily stifle competition in the telecommunications industry and not to improve service.

In a forum organized by the Ramos Peace and Development Foundation (Rpdev), which is chaired by the former president, and the TA Trade Advisory Group, headed by former Tariff Commissioner and past president of Philippine International Trading Corp. Anthony Abad, Ramos cited the need to level the playing field in business to attract foreign capital, managerial expertise and technology, as well as accelerate development.

“The matter of leveling the playing field as well as capability that will all add up to prosperity is like arithmetic. But one plus one should be equal to not two, but three or five or 11 even, because that is exponential. But what happened here is one plus one equals zero. It is a gobbling-up process to eliminate the opposition. That should not be. What we all want is a better future and a higher level of respect and even admiration for the Philippines,” said Ramos.

It was during Ramos’ presidency when Republic Act 7925, or the New Telecoms Policy Act, was passed in 1995. Under RA 7925, the telecom industry in the country is to be de-monopolized and liberalized by allowing more players to enter and compete in the telecom service under the spirit of deregulation or less stringent regulations.

“The de-monopolization of PLDT has not only made our country the world’s ‘texting’ capital with a daily volume of short-electronic messages larger than all of the entire European Union and enabling the 10 million Filipinos overseas and their families at home to be in constant touch. It has also made the new call centers and business process outsourcing industries the new drivers of our economy today,” Ramos said.

In March, PLDT announced it would acquire a 51.55-percent stake in Digitel for P69.2 billion from its parent firm, JG Summit Holdings. The closing of the deal was set for Aug. 26, 2011, pending approval of the National Telecommunications Commission (NTC). It had been moved twice from the original June 30 closing date, due to opposition from several stakeholders.

Philippine Daily Inquirer
http://business.inquirer.net/14863/fvr-warns-of-pldt-digitel-deal-impact-on-public

Gov’t to call Manuel V. Pangilinan’s bluff

2011-08-26T00:55:00.000-07:00

The government has called Manuel V. Pangilinan’s bluff, saying it was unlikely that a decision on the Philippine Long Distance Telephone Company’s acquisition of Sun Cellular would be issued this month.

The Aquino administration will decide on the merger of PLDT and Digitel at its own pace and will not be pressured by the “self-imposed’’ deadline set by Pangilinan, presidential spokesperson Edwin Lacierda said on Thursday.

Aug. 26 deadline

“As far as I know, we did not impose a deadline on ourselves. So we are studying (the deal) carefully, judiciously. And again, correct me if I’m wrong, as far as I know it was a deadline imposed by Mr. Pangilinan,’’ Lacierda told reporters.

Pangilinan, chair of PLDT, had earlier warned his group would walk away from the P74.1-billion deal if it failed to get government approval by Aug. 26.

But National Telecommunications Commission (NTC) Commissioner Gamaliel Cordoba on Thursday said the regulator was still studying all aspects of the transaction, wary of the consequences a merger of two of the country’s major telcos might have on consumers.

“We wish to point out that our current review is still within the first month of the 90-day period within which the commission is required by law to evaluate and decide upon petitions,” Cordoba told reporters on Thursday.

At NTC’s mercy

Sought for comment, PLDT regulatory affairs head Ray C. Espinosa could only say: “I suppose we are at the mercy of the NTC.”

Lacierda said the NTC was in charge of resolving the issue but acknowledged that President Aquino was “looking at the merger also.’’

“(The President) is interested to know the consequences or repercussions, that’s why it has to be studied,’’ he said.

Earlier this week, the NTC said its main consideration would be the interest of consumers. PLDT’s chief rival, Globe Telecom, which has opposed the deal, has argued that the merger would lead to a virtual monopoly of the telecom industry that the government must do all it can to stop.

PLDT currently controls about 55 percent of the local telecom market. Once it takes over Sun Cellular’s operator, Digitel Telecommunications Philippines Inc., the group will corner about 70 percent of industry revenues.

Globe has also asked the NTC to strip PLDT of some of its radio frequencies. These frequencies should then be awarded to Globe, being the only carrier with the resources to challenge a combined PLDT-Digitel entity, Globe contended.

Coverup

In its defense, PLDT said its acquisition of Digitel would create operational synergies that would lead to better services at lower prices, benefiting consumers.

PLDT lashed out at Globe, saying its demands were mere attempts at getting additional frequencies to cover up the company’s inefficient use of its existing assignments.

“(PLDT) has been the most efficient in using radio frequencies assigned to it… Globe is asking the government to punish the most efficient operator and to reward the most inefficient,” PLDT said in a separate statement.

The Senate committee on public services earlier this month ruled that PLDT’s acquisition of Digitel was legal, and that the country’s current regulatory environment ensured that industry competition remained healthy no matter how big individual players got.

But Sen. Joker Arroyo said the Digitel acquisition should not be approved until PLDT complied with foreign ownership restrictions under the Constitution.

By Christine O. Avendaño, Paolo G. Montecillo
Philippine Daily Inquirer

Digitel may resume price war 'onslaught' if PLDT buyout fails

2011-08-26T00:49:00.000-07:00

MANILA, Philippines - There may be good news for cell phone users if Philippine Long Distance Telephone Co.'s bid for John Gokongwei's Sun Cellular is scuttled as early as today: lower cell phone charges.

Sun, which Gokongwei controls through Digital Telecommunications Philippines Inc., entered the market in 2003 and ramped up the price wars, forcing PLDT and Globe Telecom Inc. to match its packages, capping all their profits. In March, PLDT and the Gokongwei group announced PLDT would buy Digitel in a P69.2 billion deal. While PLDT said it wouldn't cancel Sun's packages, most observers predicted competition would cool off.

But today is their third deadline for closing the deal. They haven't been able to close because the National Telecommunications Commission hasn't approved the deal, in part due to objections from Globe Telecom Inc. Presidential spokesman Edwin Lacierda on Thursday said the government has not yet finalized its own position on it. PLDT Chairman Manuel Pangilinan reiterated on Thursday there would be no more extensions.

"Digitel may want to begin its onslaught on margins again but honestly there's a limit to how low one can go,'' said Rico Gomez, a fund manager at Rizal Commercial Banking Corp.

"Assuming the merger is off, then Digitel reverts to cut-throat competition,'' said a stock broker who declined to be identified, adding that Globe will probably not try again to buy Digitel -- information which emerged during hearings on the transaction -- but that a company like San Miguel Corp. might. The food and beverage giant is diversifying by buying oil refiner Petron, state power assets, and it also invested in infrastructure projects and and smaller telecommunications companies.

"I don’t think Globe will want to step in, having seen the premium PLDT offered,'' the broker said. "Maybe someone like San Miguel might be interested in Digitel as San Miguel still has telco ambitions.''

JG Summit executives declined to comment. PLDT officials didn't immediately reply to messages seeking their comment.

Winners and losers

A scuttling may favor Globe, the No. 2 player, more than PLDT, already the industry leader.

"I think, ultimately, it’s a major positive for Globe, because of the favorable implications on the long-term competitive landscape,'' said Jun Tarrobago, a fund manager at ATR-KimEng Asset Management Group. "It’s more status quo for PLDT.''

An analyst at a foreign-owned brokerage said none of the players will benefit if the deal, which was perceived to reduce the intensity of competition, isn't completed.

It will be "negative for all,'' according to the analyst. This includes JG Summit Holdings Inc., through which the Gokongwei group controls Digitel.

"Investors' perception is that this is a great deal for JG Summit and Digitel,'' the analyst said. "JG Summit 'unlocked' value for Digitel via the transaction, converting shares in Digitel, an illiquid stock to PLDT, which is liquid and has a high dividend yield, at above market price valuations. The transaction also meant JG Summit would no longer have to bear the capex burden associated with Digitel.''

"The removal of the No. 3 player (Digitel) was seen to be the catalyst for more rational pricing in the industry and an eventual return to growth. No transaction means none of the above happens. I'm not sure though how much of the above factors have been priced in by investors.''

The research head of a local brokerage said PLDT and Digitel shares may take a short-term hit.

"Short-term downsides might initially be felt by PLDT and Digitel as those expecting for the merged entity might express their disappointment,'' the research head said. "After this, both might retain their status quo since Sun, for one, is known as the low-cost provider for both prepaid and postpaid categories. Some funds might favor Globe.''

By Coco Alcuaz, ANC
Posted at 08/26/2011

Senate panel upholds PLDT-Digitel deal

2011-08-23T17:45:00.000-07:00

The Senate committee on public services has upheld the Philippine Long Distance Telephone Co.’s planned acquisition of Digital Telecommunications Philippines, saying it is consistent with its legislative franchise and in the interest of the public.

In a 12-page report submitted by chairman Sen. Ramon Revilla Jr., the committee recommended the early enactment of a comprehensive anti-trust law that would "clearly define, prohibit or regulate monopolistic and unfair trade practices."

Among those who concurred with Revilla’s committee report were Senate Majority Leader Tito Sotto, Edgardo Angara, and Miguel Zubiri, who has since resigned.

Joker Arroyo, in his dissenting opinion, suggested the committee hold any action in abeyance until PLDT complies with a Supreme Court ruling for the telecommunications firm to correct its ownership structure.

The report said the transaction involves the acquisition by a duly enfranchised telecommunications company, PLDT, of a controlling interest in another duly enfranchised telecommunications company, Digitel.

"The transaction is, therefore, in pursuit and furtherance of the businesses and operations contemplated under the respective legislative franchises of PLDT and Digitel, hence the same does not require the approval of Congress."

The purchase of the controlling interest in Digitel from the Gokongweis’ JG Summit Holdings is worth about P69 billion.

The deal is awaiting approval by the National Telecommunications Commission.

The Senate report said the deal does not result in a business combination of restraint of trade and that although the constitutional mandate is that a monopoly is not prohibited, it is "regulated when public interest so requires."

The report further said that there is no comprehensive anti-trust legislation in the Philippines.

"The laws (RA 7935 or the Public Telecommunications Policy Act of the Philippines and the Revised Penal Code) did not define clearly the conditions necessary for an economic activity to be considered a monopoly, unfair competition or a combination in restraint of trade."

"Acquisition, merger and consolidation (of telecommunications companies) have become a natural phenomenon worldwide given the peculiarly fast-paced and rapidly evolving global and technological advances in this age of heightened demand, competition and ultra-modern information technology," it added.

With the share-swap deal, Sun Cellular has committed that it will continue providing the services it has provided before the share-swap deal. In fact, Sun Cellular committed that its unlimited voice and text services will become bigger and include a wider coverage, the report said.

The Senate also urged the NTC that, in reviewing the deal, it "must see to it that the same shall not be used in any way to thwart the benefits that must inure to the benefit of the consuming public."

Businessman Manuel V. Pangilinan earlier threatened to junk the deal with Digitel if PLDT does not get regulatory approval by August 26.

BY JP PEREZ
Malaya Business Insight
Source URL: http://www.malaya.com.ph/aug24/busi7.html

Brinkmanship

2011-08-21T18:01:00.000-07:00

How serious is businessman Manuel Pangilinan with his threat to shelve the controversial merger between his Philippine Long Distance Telephone Co. and the Gokongwei-owned Digital Telecommunications Philippines Inc.?

No one knows for sure at this point. But it is becoming increasingly clear that the tycoon’s patience is running short with the slow action of the Aquino administration, in general, and the National Telecommunications Commission, in particular.

The completion of the P69-billion deal for 51 percent of Digitel has already been moved twice (by a total of two months), with the NTC taking its sweet time in ruling on the time-critical issue.

Of course, word on the street is that that regulators—along with Malacañang—are favorably inclined to grant at least some demands of Ayala-controlled Globe Telecom Inc., including possibly stripping the merged PLDT-Digitel entity of one previous radio frequency (making the merger less palatable and, in a way, more expensive).

There is also the issue of PLDT’s famous dividend payout (70 percent of core earnings, minimum), which is being held up by the lack of clarity on just what the final ownership structure will look like.

In any case, expect the exasperated MVP to come back with a vengeance—either in the telecommunications industry or in his other concerns—if he does, indeed, decide to move on from this deal with the Gokongwei group (which may have to rethink its financial plans if the merger falls through)

— Daxim L. Lucas

Source URL: http://business.inquirer.net/14121/biz-buzz-%E2%80%98twisting-the-truth-%E2%80%99-again

PLDT may drop Digitel acquisition if regulatory approval not secured 26 Aug

2011-08-21T17:46:00.000-07:00

Philippines telco has new deadline to close its acquisition of rival player.

Philippine Long Distance Telephone Co. may call off a deal to acquire rival Digital Telecommunications Philippines Inc. if it fails to secure regulatory approval for the transaction by August 26, the new deadline to close the deal, PLDT Chairman Manuel Pangilinan said Thursday.

The PHP74.1 billion ($1.7 billion) deal was originally expected to close on June 30, but that deadline was moved to July 30 to allow regulators extra time to hear complaints over the impending merger between PLDT and Digitel, particularly from rival Globe Telecom Inc. A new deadline was set for late this month because some issues are still being discussed by the National Telecommunications Commission.

"We have extended that (deadline) until the 26th of August and if nothing would happen by that time, then maybe we will just call it a day," Pangilinan told reporters."We will just move on and Digitel can move on as well and all of this hullabaloo will just die down."

Pangilinan has described the proposed merger with Digitel as a "game changer" for the local telecommunications industry since it will create a company that will hold more than two thirds of the country's cellular subscribers.

"If it's not meant to be then it's not going to happen. Let's move on. PLDT won't die because of it," he said.

By Cris Larano, Dow Jones Newswires

Thursday 18 August 2011

MVP: PLDT-Digitel deal off if NTC OK not secured by Aug. 26

2011-08-21T17:42:00.000-07:00

Philippine Long Distance Telephone Co. (PLDT) will drop its acquisition of a 51.55 percent stake in Digital Telecommunications Philippines Inc. (Digitel) if the National Telecommunications Commission fails to approve the deal by August 26, according to its chairman.

"Kung wala pang mangyari siguro we will just call it a day na lang. Matagal na. We will just move on and Digitel can move on and all of this hullabaloo will just die down," said Manuel V. Pangilinan.

Pangilinan said, however, that he could not speak for J. G. Summing Holdings Inc., the seller.

PLDT and JG Summit have extended until the end of this month the closing date for the P69.2 billion transaction. The original date was June 30.

PLDT struck the deal with J.G. Summit in March.

"I’m just reflecting my view, I can’t speak for JG Summit, but yun lang ang personal feeling ko na siguro masyado nang napakaraming gusot at napakasalimuot na ito. Look, kung hindi pwede hindi pwede. Let’s move on," Pangilinan said.

He added that both PLDT and Digitel will not collapse if the transaction will not push through.

Pangilinan also said that it is the prerogative of J.G. Summit if it wishes to sell Digitel to another telecom company.

Digitel, No. 3 in the industry, earlier said second-ranked Globe Telecom offered to buy a majority stake in the company.

Pangilinan had said that the regulatory process, which started in early April, has taken longer than the company had expected.

PLDT said the transaction is not anti-competition nor is it in violation of any existing law or regulation so as to warrant the disapproval or imposition of additional conditions.

"The transaction is not anti-consumer precisely because it responds to the country’s urgent need for a robust nationwide broadband infrastructure and enhanced yet affordable consumer services." it said.

Once the transaction is approved, Digitel and PLDT will be more cost-efficient via capex optimization, co-location of base station, rationalization of overlapping technical system, bulk purchasing of network equipment, communications devices and other material, PLDT said.

It said the acquisition will increase the capability and better position both PLDT and Digitel to provide higher quality and even more affordable services to fixed line, wireless, and broadband subscribers – from voice to SMS, data, Internet and video services.

Besides Globe, Eastern Telecommunications Philippines Inc., Sealand Telecommunications Inc. and consumer groups TXTPower and TXTMate oppose the PLDT-Digitel deal because they said it could hurt competition and the consumers.

Source: abs-cbnNEWS.com

Posted at 08/18/2011 6:27 PM

Agawan-base

2011-08-16T17:29:00.000-07:00

Isa sa pinaka-popular na laro ng bata ang agawan-base sa bansa. Karaniwang laro itong mga nasa elementarya at kadalasang nabibitbit din ito sa maagang yugtong buhay hayskul ng mga bata.

Sa larong ito, dalawang magkatunggaling grupo ng mga magkakalaro ang magkalaban. Ang unang grupo ay kukuha ng base sa gawing kaliwa ng playground at ang kanan nito ang gagawin nilang outpost. Ang kabilang grupo ay sa kabilang banda naman ng palaruan at nakaharap ang base nila sa outpost ng unang grupo. Ang outpost naman ng grupong ito ay nakapwesto sa may harapan na banda naman ng base ng unang grupo.

Isa itong larong habulan.Sa larong ito, ang unang lalabas sa unang grupo halimbawa, ang “prey”. Bilang sagot, ang lalabas naman sa ikalawang grupo ay “hunter”. Pero ang hunter na ito ay maaaring maging prey kapag may lumabas na isa pa mula sa unang grupo, and so on. Ang bawat prey ay kailangang makabalik sa base para makaiwas sa “taga” ng humahabol sa kanya.

Maaari ring sabay-sabay na magpahabol ang isang grupo at maaari ring maraming hunter ang lalabas para habulin ang isang prey.

Kapag “nataga” ang prey, magiging “hostage” itong grupong hunter. Ang bawat hostage ay pupunta sa outpost ng grupong nakahuli sa kanila. Para mapalaya ang hostage, kailangang mahawakan o mahipo sila ng kagrupo nila. Syempre hindi magiging madali yan dahil hahabulin sila tiyak kapag sila ang unang lumabas sa base.

Kapag nahuli lahat ng kasapi ng isang grupo, talo na sila sa laro.

Sounds familiar? Yes.

Ang unang grupo ay ang PLDT at ang kabila ay Globe. Pareho silang nagsisikap na makahuli ng pinakamaraming hostage. Ang hostage na yan ay ang telephone frequency ng bansa, isang limitadong pampublikong rekurso.

Sa kasalukuyan, mapapabilis ang pagdami ng hostage ng PLDT dahil sa naka-ambang pagbili nila sa Digitel /Sun. At dahil wala nang pwedeng maging hostage ang Globe, nag rereklamo sila ngayon.

Ang punto ko ay ito, ang dalawang team na ito ay parehong may pagnanais na makuha ang pinakamaraming hostage. Sa life cycle kasi ng isang negosyo, natural na tunguhin nito ang pag-accumulate ng excess capital lalo na kung accumulated narin ang kanilang excess income. At dahil dito, papangarapin nila ang mas malaking excess production na siguradong magreresulta sa mas malaking excess income. In the end, makokontrol nila ang merkado, ang industriya, at ang konsyumer. Ang tawag dito: monopolyo.

Sa agawang base na ito, ang mga manlalaro ay nag-aagawan ng frequency. At maaaring sa prosesong laban nila’y may magmukhang pro-people sa kanila. Pero huwagka, kung sila rin ang mananalo, tiyak pareho rin sa posisyon ng PLDT ang posisyon nila ngayon.

Kaya tama lamang na ipanawagan na i-level ang playing field ng industriya. Dahil sa dulo nito, sinuman sa dalawang magkatunggaling ito ang manalo, tayo pa ring mga consumer ang talo.

At least three factors that can create a telecom monopoly

2011-07-26T21:54:00.000-07:00

In discussions on the imminent buyout of Digitel by Smart (incidentally taking place simultaneously but independently with a similar buyout also involving telecom firms in California), it would seem that the victims of a resulting monopoly are only those companies cut out from the deals, which would be Globe in the Philippines, and reportedly Sprint in California. Overlooked and almost never mentioned in the debates is the sector, actually the most vulnerable, sought to be protected by government regulatory agencies from the harmful effects of a monopoly – the customers.

In the Philippines they are the small-scale businesses that thrived after costs were lowered and new telecom products were introduced following the breakup of the telecom monopoly in the 1990s. Related to this, in recent news reports and discussions, a question is invariably asked: “Why is it alright for Globe Telecom to buy Digitel, and not for PLDT to buy Digitel?”

A little basic arithmetic on the market shares of each party will clarify the matter: had Globe with its current 30-percent market share succeeded in buying Digitel’s 17 percent, it would be holding still a smaller market share – only 47 percent against PLDT’s 53 percent. But with PLDT buying Digitel, the former would corner an enormous 70 percent of market share.

Similarly, in the year 2000 when Globe, with 40-percent overall market share, acquired Islacom’s 2 percent, it ended up holding a total of only 42 percent – still less than the biggest telecom’s then overall market share of 45 percent.

But market share is only one factor; there are allegedly at least two other more important factors that could lead to the possible creation of a monopoly. One of these is the distribution of radio frequencies. Globe claims it has to serve 27.3 million subscribers using only 99 MHz, while PLDT-Digitel will serve 60 million with a grossly disproportionate 372 MHz. In many other countries, it is claimed, no single telecom owns more than 35 percent of the frequency bands.

The other factor is the ease of interconnection and cost of access for each telecom firm. Some believe this factor to be the most critical. A research on actual cases that arose from this matter and called for the intervention of the National Telecommunications Commission or the courts, (since the breakup of the telecom monopoly in the 1990s) and on the present state of interconnection among all telecom companies should easily reveal the varying degrees of willing compliance by every telecom firm.

In the Philippines, it is hoped that the regulatory agency consider all these three factors in making assessments and decisions, to forestall the creation of a monopoly—for the sake of the customers.

—BENJAMIN B. AGUNOD,

benjamin2914@yahoo.com

Philippine Daily Inquirer

12:03 am | Thursday, July 14th, 2011

Monopolyo sa Telekomunikasyon – Tutulan! Labanan!

2011-07-24T05:13:00.000-07:00

Matatandaang binili ng Philippine Long Distance Telephone (PLDT) ang kumpanyang Digitel na may-ari ng Sun Cellular at kasalukuyang dinidinig sa tanggapan ng National Telecommunications Commissions (NTC). Kung sakaling payagan ng NTC ang naganap na bilihan, mabubuo ang monopoly ng PLDT-Digitel na magdudulot ng problema sa ating bansa sa serbisyo ng komunikasyon.

Ang PLDT ay kasalukuyang nagmamay-ari ng SMART Telecom na may pinakamalaking subscribers sa buong bansa. Kung idadagdag pa ang Digitel, makukuha nila ang 70% ng merkado at 77% ng prangkisa sa telecom industry. Mawawalan ng puwang ang iba pang negosyo sa industriyang ito, wala nang kompetisyon, madidiktahan nila ang presyo at kalidad ng serbisyo at manganganib ang karapatan nating mga konsyumer.

Higit na nakakabahala ay karamihan sa mga monopolyo sa ating bansa ay pag-aari ng mga dayuhan Ayon sa inilabas na desisyon ng Korte Suprema nito lamang Hulyo 2011, higit pa sa 40% ng PLDT ay pag-aari na ng mga dayuhan. Ito ay labag sa ating Saligang Batas na nagtatakda ng 40% foreign ownership limit.

Nagpipyesta na naman ang mga gahamang negosyante at kapitalista tulad ng may-ari ng mga kumpanyang PLDT-Smart Telecomm. Nanunumbalik na muli ang mga kartel, monopolyo at iba pang anyo ng kontrol ng iilang mayayaman sa industriya at ekonomiya ng bansa. Ang mga pangunahing serbisyo tulad ng telekomunikasyon, kuryente, tubig, shipping at mga batayang produkto tulad ng bigas at asukal ay ilan sa mga kailangang bantayan ng pamahalaan upang tiyaking ang mga ito’y abot-kaya at kapaki-pakinabang para sa mga mamamayan.

Hindi dapat palagpasin ng mga ahensiya ng pamahalaan, lalo na ang NTC, ang ginawang ito ng PLDT-Smart at Digitel-Sun. Si Pangulong Noynoy Aquino mismo ay nagsabing ayaw nya ng kartel at monopolyo. Ngayon na ang panahon upang makialam ang Presidente at Department of Justice upang proteksiyunam ang mamamayan laban sa monopolyo. Huwag nating ibalik ang madilim na nakaraan ng monopoly sa panahon ng diktadurang Marcos.

Tutulan at labanan ang panunumbalik ng monopolyo sa ating bansa!

No to Telecom Monopoly!

NTC, DOJ, P-NOY Proteksiyunan ang consumers at mamamayan, hindi ang iilang negosyante!

Lumahok sa piket protesta sa NTC at ibang ahensya ng pamahalaan!

Magkaisa para sa kapakanan ng taumbayan!

Sumama at makiisa sa SLaM Hour! Patayin ang inyong cellphone, huwag mag-text o tumawag sa loob ng isang oras, ganap na 12:00 ng tanghali hanggang 1:00 ng hapon, sa araw mismo ng SONA ni PNoy sa Hulyo 25.

Consumer group calls for protest vs telco monopoly

2011-07-13T07:01:00.000-07:00

By Carmelle Marie Harrow
Tuesday, July 12, 2011

A GROUP in Davao City is urging Dabawenyos to turn off their cellphones during the State of the Nation Address (Sona) of President Benigno Aquino III on July 25 to show dissent against a looming monopoly in the telecommunications industry.

The Samahan Laban sa Monopolyo (Slam) is calling on the cooperation of Dabawenyos between 12 noon and 1 p.m. of July 25 dubbed "Slam Hour."

Slam organized a People's Forum Tuesday at the Mandaya Hotel to discuss the imminent control of 77 percent telecom frequencies in the country due to PLDT's acquisition of the majority of telecommunication franchise with its merger with Digitel-Sun Cellular.

Participants of the forum agreed to join the Slam Hour and will hold an assembly on July 25, together with students and teachers from Ateneo de Davao University and University of Mindanao to coincide with the nationwide Slam Hour.

"Frequency is an open market and dominating 77 percent of the market share, hindi tama yun, dapat there should be a 50 percent available free market and allow free interconnection," said Epee Casuncad of Slam.

He added that the government should do its job in protecting the free market because people would have no choice if monopoly prevails.

"Bandwidth is a new form of technology, at kung iisang kumpanya mag-dodominate nito parang ginagaya nila ginawa ng AT&T in the States, and PLDT is trying to accomplish that. They should level the playing field," said Jess Sandow, Slam convenor.

Casuncad explained during the forum to the participants the impact of the monopoly in the telecommunication industry.

He said PLDT's dominance can become the sole service provider and that without competition, consumers will not have a choice to get the best price and quality service for their money.

"Nakalaya na tayo noong panahon ng diktadurya and it's coming back again in another form. Kung walang mapoprotect ng consumers, paano natin malalabanan to? And it's going to hit our people. We should be vigilant." Casungcad said.

The National Telecommunications Commission (NTC) is conducting hearings about the merger application of PLDT and Digitel and that the decision is to be released soon.

"Let's just hope that the new DOTC (Department of Transportation and Communication) can do something about this, because the government should regulate this and NTC should know better," Casuncad added.

Published in the Sun.Star Davao newspaper on July 13, 2011.
Source URL: http://www.sunstar.com.ph/davao/local-news/2011/07/12/consumer-group-calls-protest-vs-telco-monopoly-166485

Monopolyo 102

2011-07-11T00:47:00.000-07:00

Ayon sa mga aklat, ang monopolyo ay control ng nag-iisang korporasyon sa isang partikular na industriya.

Kung by the word na susundin ang sinasabi ng aklat, tumpak sa bihingang claim na monopoly ng mga grupong katulad ng SLaM ay haka-haka at likhang malilikot na guni-guni ng mga taong tutol sa merdyer ng PLDT at Digitel.

Siyanga ba?

Mas mainam na isalaysay ang aking punto gamit ang maka-uring relasyon ng PLDT at ng katunggali nito sa industriya ng telekomunikasyon na pinapangunahan ng Globe Telecom.

You see, ang PLDT at Globe ay parehong nasa iisang bubong: ang bubong ng kapitalismo sa bansa. Ang bawat isa ay kasalukuyang nasa gitna ng maigting na kompetisyon. At bagamat minsa’y kinakatangian itong panaka-nakang black propaganda ng bawat isa laban sa isa’t-isa, mahalagang ilagay sa ating isipan na ito ay simpleng tunggalian ng isang magkapatid, being capitalism as their mother.

Mahalagang isa-isip kung gayon na ang tunggaliang nagaganap sa pagitan nila ay isang porma lang ng pag-aagawan ng rekurso at ng merkado (radio frequency at saklawna consumer). At bagamat wastong bantayan ang posibilidad ng pagkakaroon ng monopolyong PLDT kapag natuloy ang pagsakop nito sa Digitel, mas wastong huwag nating kakalimutan ang magmasid sa mga kaganapan sa likod ng isyung merdyer.

Ang merdyer na ito, bagamat iligal, ay isang pormang taktikang dibersyon. Isang taktikang naglalayo sa atensyon ng taumbayan sa tunay na isyu.

Ang tunay na isyu: monopolyo. At bagamat hagip nito ang posibilidad na pagkontrol ng PLDT sa industriya, ang binabanggit ko ay ang magaganap na monopolyo immediately after the finalization of the PLDT-Digitel merger.

You see, may mali tayo sa pag-unawa sa depinisyon ng monopoly ayon sa sinasabi ng mga teksto. Ang solong kontrol ay ipinagkakamali nating solong entidad lamang. Nasa ating bansa ang malinaw na patunay nito: ang kartel ng tatlong malalaking korporasyon ng langis.

Ang monopoly kasi, sa praktika, ay kahalintulad ng kartel. Ang kartel ay isang monopoly ng isang grupo ng negosyo sa isang particular na industriya. Sa kartel, wala nang nagaganap na kompetisyon dahil iisa lang ang presyong itinatakda nila sa kani-kanilang mga produkto. At para hindi mahalata, sadyang pinapababaan o itinataas ng isa sa grupong ito ang presyong kanilang produkto. Pero hindi nila ito ikakalugi. Ang layunin lang ay maka-create ng larawan ng kumpetisyon at matanggal ang anumang duda sa pagkakaroon ng monopolyo.

Kaya sa likod ng mga naririnig nating pagtutol ng Globe ay ang awit ng kasiyahang magkapanabay nilang kinakanta ng PLDT. Pag dalawa na lang silang major player, mas madali na ang pagtatakda ng control sa presyo at serbisyo. At dahil siguradong may 29% ng radio frequency ang Globe, sigurado ring hindi sila mauubusan ng consumer.

Ito ang dapat nating bantayan. Ang magaganap na monopolyo ng dalawa habang hinihintay natin ang kaganapan ng monopolyo ng isa.

On the Illegal and Monopolistic PLDT-Digitel Merger

2011-06-30T18:16:00.000-07:00

Privilege Speech delivered before the House of Representatives
by Bayan Muna Rep. Teddy A. Casino
June 6, 2011

Mr. Speaker, dear colleagues.

I rise on a matter of personal and collective privilege to protect the integrity of the House and help prevent the re-emergence of a monopoly in the telecommunications industry.

Around two months ago, telecommunications giant PLDT, which owns mobile phone leader SMART Communications, managed to buy into and gain control of Digital Telecommunications Inc., which in turn owns Sun Cellular, the third biggest mobile service provider. The merger created major tremors in the industry, the business community and mobile phone consumers.

Nagulat po ang lahat nang mabalitaan na ang PLDT-Smart, na nagmamay-ari na ng Red Mobile at Piltel Talk ‘n Text at kumokontrol ng 58% ng telecommunications industry, ay binili ang Digitel-Sun Cellular, na may hawak naman ng 13% ng maket.

Ibig sabihin, sa isang iglap, napunta sa kamay ng PLDT-Smart ang 71% ng buong telecommunications market.

Ang unang reaksyon ng marami, paano na ang unlimited text and call plans na pinauso ng Sun Cellular at matagal nang sakit ng ulo at gustong ipatigil ng Smart at Globe? Isang tanong din, kung ang sarili ngang serbisyo ng PLDT at Smart hindi nila maayos-ayos, iyon pa kayang sa Digitel at Sun?

Hindi kataka-taka ang ganitong reaksyon. May karanasan na kasi tayo sa monopolyo sa telecommunications industry. Noong araw, kontrolado rin ng PLDT ang telekomunikasyon sa Pilipinas. Ang resulta, mataas na presyo at masamang serbisyo. Ayaw na nating bumalik sa ganitong nakaraan.

In fact, Mr. Speaker, dear colleagues, this abhorrence of monopolies is enshrined in the Constitution. Section 19, Art. XII of the 1987 Constitution states: “The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed.”

In the mid 1990s, the telecommunications industry was de-monopolized and telecommunications franchises granted to several companies with a built-in safeguard against any unintended reconsolidation of the industry. Among the said franchises was the one of Digitel, Republic Act 7678, which under Sec. 15 stated that Digitel “…shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity without the prior approval of the Congress of the Philippines. Neither shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.”

Essentially the same provisions can be found in the franchises of PLDT, RA 7082 renewed in 1991, Globe Telecom RA 7229 granted in 1992, and Smart Communications RA 7294 also in 1992. This provision was also reiterated in the franchise granted by Congress in 2002 to Digitel Mobile Philippines, Inc., which owns Sun Cellular. Under the said franchises, Digitel, PLDT and Globe – the top three telecommunications companies – are required to get congressional approval before any lease, transfer, grant of usufruct, sale, and transfer of rights and privileges of their franchise.

Bakit po nilagay ng Kongreso ang ganitong mga probisyon? Sa tingin ko’y upang matiyak na hindi basta-bastang malilipat ang prankisa ng mga kumpanyang ito sa kung sinu-sino lang. Na hindi ito mapupunta sa mga fly-by-night operations o kaya’y sa mga nagtatangkang magtatag ng monopolyo sa industriya.

Precisely, Mr. Speaker, this is what happened in the PLDT-Digitel merger. Kinain ng PLDT-Smart ang Digitel-Sun Cellular. The merger now controls 71% of the market. What is wrong with this?

First thing’s first. The merger is illegal because such a buyout or swap and share deal, whatever you call it, requires congressional approval. This is explicit in Digitel’s and Digitel Mobile’s franchises. Proponents of the merger say congressional approval of such mergers and acquisitions have already been waived by virtue of the 1995 Public Telecommunications Policy Act (RA 7925), which ensures equality of treatment for franchise holders. The argument is that since the requirement for congressional approval of such mergers among telecom franchise holders have already been removed in two other franchises, that of RCPI and Sear, then under the principle of equal protection, the same should be waived for the merger involving PLDT-Smart and Digitel-Sun.

But, Mr. Speaker. I don’t think the framers of RA 7925 or other franchises that waived congressional approval ever imagined a situation where PLDT or any entity would once again control 71% of the market. Ang iniisip siguro ng Kongreso noon, kainan ng maliliit na isda, hindi ng mga dambuhala. A deal that would reverse the policy of demonopolization in the telecommunications industry was certainly not contemplated by previous Congresses and should not be tolerated by the 15th Congress. The fact is, congressional approval is explicitly required in the franchises of Digitel, Digitel Mobile, PLDT, Smart Communications and Globe Telecom.

Second, not only is the deal illegal, it will foster a monopoly in the sector and all the ills that come with overwhelming market power. Ngayon pa lang nga, hindi na magawang matino ng PLDT-Smart ang kanilang serbisyo, bibigyan pa natin ng dagdag na negosyo? We are all victims of dropped calls, spam texts, questionable billings, unreliable and slow internet connections from the major players. Shouldn’t they improve their services first before gobbling up the competition?

Let’s be honest for a minute. What will stop PLDT from discontinuing or even disrupting Sun Cellular’s unlimited text and call plans? And with Sun out of the way, what will stop PLDT-owned Smart Communications from conniving with Globe Telecom in raising rates the way they always wanted it to happen?

Unfortunately, the body that is supposed to regulate monopoly practices in the industry, the National Telecommunications Commission (NTC), cannot be expected to protect the consumer or national interest. Our experience with the NTC is that it is afraid of the giant telcos. Sa halip na pangalagaan ang interest ng publiko, inuuna pa nito ang interes ng malalaking kumpanya sa telekomunikasyon.

I have yet to recall of an instance when the NTC exercised its regulatory powers to rein in the profiteering and abusive practices of the telcos. Palagi hong pinagbibigyan ang telco - pinapalusot ang lousy services at hinahayaan ang mataas na singil - on the pressumption that there is healthy competition.

There are persistent rumors that our NTC commissioners are on the payroll of the telcos. In this light, maybe its about time that we conduct lifestyle checks on the NTC commissioners.

In any case, Mr. Speaker, my fear is that the NTC and SEC will act to approve the PLDT-Digitel deal during our upcoming break. Kung magkabulilyaso sa deal na ito, tayo po, sa kahuli-hulihan, ang masisisi dahil sa atin nanggaling ang prankisa ng PLDT at Digitel. Hindi tayo dapat pumayag na basta-basta na lang itong lalabagin at manunumbalik ang monopoloyo sa industriya ng telekomunikasyon.

Dapat ho magdahan-dahan ang NTC at SEC sa pag-apruba ng merger na ito. Dapat sundin ang nasa batas – na kailangang dumaan ito sa isang transparent na proseso, may public hearing, at dapat dumaan din sa Kongreso para mabusisi natin kung talagang makikinabang dito ang mga konsyumer at ang interes ng publiko.

Yun lang po muna. Maraming salamat po.

***

Source URL: http://www.bayanmuna.net/ps.php?subaction=showfull&id=1307352885&archive&start_from&ucat=1&

RA 7925

2011-06-29T20:40:00.001-07:00

Ra 7925

View more documents from SLaM Iam

PLDT-Digitel MergerPro- or Anti-consumer?

2011-06-29T20:39:00.001-07:00

Merger presentation

View more presentations from SLaM Iam

Spectrum equation in phil telecom

View more presentations from SLaM Iam

SLaM for the sake of the People!

2011-06-28T00:26:00.000-07:00

SLaM calls all people and groups to participate in a united call to action, the SLaM Hour: No call or text for 1 hour, from 12:00 noon to 01:00 PM in July (exact date to be announced later). This call to action loudly asserts that true, authentic power and authority comes from the people and is accorded by the people to whomever they freely choose. On the SLaM Hour, all people and groups nationwide are enjoined to express the voice of the people by turning off their cellular phones for 1 hour, thus, no calls or text nationwide for 1 hour at the agreed date and time.

Cebuanos protest PLDT-Smart takeover of Digitel franchise, telecomm monopoly

2011-06-26T22:09:00.000-07:00

Consumer, civil society, religious, and youth and student groups in Cebu launched today a movement to stop monopoly in the telecommunication sector in a People’s Forum that also warned of a looming return of PLDT’s monopoly during the days of the Marcos regime.

The groups assailed the impending control of PLDT-Smart of 70% of the contested franchise of frequency and bandwidth in the telecommunications sector as the company acquired Digitel, owner of Sun Cellular.

“In the light of all this, it is the responsibility of the government to act swiftly and ensure that public interest is upheld. The Senate has already waived its duties to the people and brought the issue back to the NTC. At the end of the day, we look up to the government for intervention and ensure that our right to fair and quality services and our right to choose as consumers are not violated,” said Jess Sandow, Convenor of Samahan Laban sa Monopolyo (SLaM).

The forum, organized by SLaM together with Freedom from Debt Coalition-Cebu, Sanlakas Sugbu and University of San Carlos Lex Circle (Law Student Council) gathered about 50 representatives of different cause-oriented groups in the province. In a resolution passed during the forum, the participants agreed to intensify the campaign nationwide to defend any attempt of maintaining monopoly in the country’s strategic industries, such as telecommunication.

“The telecommunication airwaves or frequency is a public domain that should be the subject of government regulation. This is an important infrastructure to safeguard the people against corporate greed. It should not be controlled by any single company to ensure true and fair competition among the different players while the consumers’ welfare are duly protected,” explained Sandow.

The other groups that attended the forum are the Cebu Bloggers Society Incorporated (CBSI), Youth Against Debt-Cebu, Piglas Kabataan, Youth for Rights (Y4R) Sibonga, Union of Progressive Students, University of Southern Philippines Foundation, UP Cebu, Kongreso ng Pagkakais ng Maralita ng Lungsod (KPML), Philippine Earth Justice Center, Redemptorist Center for Social Concerns, United Church of Christ in the Philippines (UCCP), Action for Nurturing Children and Environment (ANCE), Save Sibonga Movement, Task Force Detainees of the Philippines, Human Rights Defenders, Cebu Chamber of Commerce, NAPNACI-Naga, CASE-Naga, USREP-D, KLARAI-Carcar, CNU-SSG, SIFPO and Padilla Review Center.

Sa Ganang Akin

2011-06-26T22:00:00.000-07:00

Ayon sa mga sabi-sabi, ang nagbabadyang pagsasanib ng PLDT / Smart at DIGITEL / Sun ay magreresulta sa mas malawak na saklaw ng serbisyo nila, at kung gayo’y sa mas malaking porsyentahe na mapaglapit pang lalo ang mga magkakapamilya at magkakaibigan, gaano man ang mga ito kalayo sa bawat isa.

Ayon sa mga sabi-sabi, lohika na raw ang nagsasabi na pag natuloy ang pagsasanib ng dalawang higante sa telekomunikasyon, mas bibilis ang konenksyon sa internet, mas lalawak ang saklaw ng mga unlicalls at unlitext, mas magiging masigla at walang patid ang daloy ng komunikasyon sa pagitan ng mga magkakakilala at magkakamag-anak.

Ayon sa mga sabi-sabi, ang ganitong sigla ng komunikasyon, kung matuloy ang pagsasamang PLDT-DIGITEL, ay magaganap din sa loob ng hanay ng negosyo. Mas masiglang business deal via telephone conversations, mas malakas na trapiko sa internet.

Ayon sa mga sabi-sabi, magreresulta ito sa mas murang halaga ng text at tawag, at maging sa per oras na singil sa koneksyon sa internet.

Pero sa ganang akin, ang PLDT/Smart at DIGITEL/Sun ay parehong dambuhalang negosyo na ang pangunahing layunin ay magkamal ng sandamakmak na kita.

Sa ganang akin, ang ganitong klase ng mga negosyo ay may mga espisipikong corporate plans na nakasandig sa prinsipyo ng pagkamal ng malaking kita sa pinakamaliit nitong gastusin.

Sa ganang akin, ang prinsipyong ito ang kadalasang dahilan ng mga merdyer ng mga kompanya. (Maliban syempre sa obyus na dahilan ng nagbabantang pagkalugi kaya naibebenta sa malaki ang isang maliit na kompanya.)

Sa ganang akin, kahit pa makuha ng pinagsamang PLDT/Digitel ang 70% ng telephone frequency ng bansa, hindi pa rin uunlad ang klase ng serbisyo nilang nakaasa dito dahil kasamang makukuha ng PLDT, obviously, ang milyun-milyon ding subscriber ng Digitel/Sun. Sa maikling salita, the same banana pa rin ang magiging kalagayan, naiba lang ang pagmamay-ari pero pareho lang ang kabuuang bilang ng subscriber na mag-aagawan sa napakaliit na porsyentahe ng telephone frequency.

Sa ganang akin, malaki ang posibilidad na hindi ito tumungo sa mas murang halaga ng text, tawag at surfing time, maliban na lang kung tatapatan sila head-on ng natitirang malaking kompanya ng telekomunikasyon. Kung bababa nga ang halaga, hindi ito magiging pangmatagalan. Magaganap lang ito sa mga unang bahagi ng inaasahang mainit na tunggalian ng pinagsamang PLDT/Digitel laban sa Globe.

Sa ganang akin, ang anumang magaganda umanong epekto ng merdyer ng PLDT at Digitel ay puro lang press release. PR. Hawshaw. Ampaw. Walang laman.

Dahil sa ganang akin, wala sa hinagap ng merdyer na ito ang kapakanan ng mga subscriber. Ang tanging halaga natin sa merdyerna ito ay ang pisong manggagaling sa ating mga bulsa na nais kamkamin ng PLDT/Digitel.

Ding Loguibis

Kontribyutor

Delay mars PLDT buyout of Digitel

2011-06-25T07:14:00.000-07:00

PHILIPPINE Long Distance Telephone Company is unlikely to meet its deadline to get regulatory approval for the acquisition of Sun Cellular after the National Telecommunications Commission extended the hearing at the instance of second-ranked Globe Telecom Inc.

“We are giving Globe the opportunity to cross examine our witness because we have nothing to hide. It was Globe who asked for this because their legal counsel said he will be out of the country,” Ray Esipinosa, PLDT head of Regulatory Affairs and Policy told reporters after the hearing.

PLDT had wanted to secure regulatory approval for its acquisition of Digital Telecommunications Phils. Inc. on June 30. The NTC set the next hearings on July 5, 7, 12 and 14.

“We will just play it by the ear. This is not a difficult case. It’s a simple matter of transaction. The decision making policy should not take a long time because this is not like applying for a Provisional Authority, Certificate of Public Convenience and Necessity, which all takes a long time,” Espinosa said.

Amid the delays, PLDT wants the Department of Trade and Industry to look into the unfair trade practices of Globe in properties of the Ayala group.

“It’s a violation of the law . . . its a public crime. The DTI and the Department of Justice should look into the restraint of trade,” Espinosa said.

“Globe cannot be a guardian of free competition. It is the beneficiary of a combination and arrangement in restraint of trade—it has exclusivity in the Ayala malls, which is owned and controlled by the majority owner of Globe,” the PLDT lawyer said.

He said that PLDT, Digitel and other providers cannot provide basic telecommunication services to tenants of these malls even if they want to because of the exclusivity bestowed upon Globe by its majority owner.

“This egregious behavior is what falls squarely within the scope and mandate of EO 45, and the DOJ should investigate and stop this illegal practice to more free competition in domestic trade,” Espinosa said.

“Globe is stepping up the pressure on government so that it will bestow upon Globe, as if as a matter of entitlement, state sponsored concessions which will change the market driven advantages of its rival, particularly PLDT and Digitel,” he added.

PLDT earlier opposed the clamor of Globe for the DOJ to investigate and stop the acquisition of Digitel. PLDT will acquire a 51.5 percent stake in Digitel owned by JG Summit Holdings Inc. for P69.2 billion.

President Benigno Aquino 3rd had ordered the NTC and other agencies to look into the matter. The President also issued Executive Order 45, appointing the DOJ as the lead agency that would investigate monopolies and cartel behavior to protect consumers.

Besides Globe, other telcos such as Eastern Telecommunications Philippines Inc. and Sealand Telecommunications Inc. as well as consumer groups TXTMate, SLaM and TXTPower are opposing PLDT’s acquisition of Digitel because of the negative repercussions on industry competition and consumer interest.

State-run Philippine Institute for Development Studies earlier said the PLDT-Digitel deal may affect competition because of high entry barriers and the absence of effective competition.

By Darwin G. Amojelar, Senior Reporter

Source URL: http://www.manilatimes.net/business/delay-mars-pldt-buyout-of-digitel/

Consumer group urges NTC to favor public in PLDT-Digitel deal

2011-06-22T14:34:00.000-07:00

A newly formed consumer group has called on the National Telecommunications Commission (NTC) to rule in favor of consumers in the share-swap deal between Philippine Long Distance Telephone Co. (PLDT) and Digital Telecommunications Philippines Inc. (Digitel).

Contrary to what PLDT is purportedly saying, the deal is not merely a business transaction but an eventual monopoly of the telecom firm, should it be approved, Samahan Laban sa Monopolyo (SLaM) said in a statement Wednesday.

"We urge the members of the Commission to be true to their mandate and rule with the interest of the consumers in mind," said Jess Sandow, convenor of SLaM.

The deal is of public concern and should not be relegated to talks only among the telecom firms and the NTC, Sandow said

"We are talking about the impact of this trend that will bring us back to the monopoly regime that made us consumers at the mercy of a single telephone company giant," he explained.

PLDT earlier downplayed allegations that the deal is anti-competition, insisting that they intend to keep Digitel and all its services as a separate company.

“We will make a formal commitment to the government for the benefit of consumers," PLDT chairman Manuel Pangilinan said.

Should the deal be approved, the PLDT group will hold a commanding 70 percent of the telecommunications market, leaving second-ranked player Globe Telecom with only 30 percent.

Globe had urged the NTC to redistribute the frequencies PLDT will eventually hold, saying it could potentially kill their business — given the scarcity of the resource — and have a negative impact on consumers.

"All we want here is a level playing field. [The PLDT-Digitel deal], to our mind, is dangerous. When a carrier exercises so much clout, you are endangering the welfare of the public," Globe corporate counsel Rodolfo Salalima said.

As of Wednesday, the joint application of PLDT and Digitel is on its third hearing before the NTC.

The commission has already set the dates of the succeeding hearings on the first week of July, where PLDT and Digitel will present a third and fourth witness who will testify for the compliance of the application with the requirements set by the NTC.

It has also set July 12, 13 and 14 as the dates when oppositors to the deal can present their own witnesses.

After the presentation of witnesses, the case will then be elevated to the commission en banc for resolution.

PLDT had earlier signified willingness to extend the June 30 deadline for completing the deal, should the commission fail to release a resolution before the said date.

JM Tuazon/VS, GMA News

Article posted June 22, 2011

Source URL: http://www.gmanews.tv/story/224144/business/consumer-group-urges-ntc-to-favor-public-in-pldt-digitel-deal#

NTC urged to rule in favour of consumers in PLDT-Sun merger deal

2011-06-21T22:39:00.000-07:00

The newly formed consumer group, Samahan Laban sa Monopolyo (SLaM) urged the National Telecommunications Commission (NTC) to uphold public interest in the ongoing hearing of the merger of PLDT-Smart and Digitel-Sun.

The members of SLaM urged the NTC to rule in favour of the consumers in the acquisition of PLDT-Smart of telecommunication franchise of Digitel-Sun and stop the impending monopoly as a result of the potential control of 70% of the bandwidth frequency at stake.

In a statement sent to the media and distributed during the hearing today, SLaM said the application of PLDT on their merger with Digitel is not a purely business transaction as most of the discussions in the hearing yesterday. The real issue is the resulting monopoly of PLDT to potentially control majority of the telecommunication frequencies if the deal is approved.

“According to its website, the NTC is a regulatory agency providing an environment that ensures reliable, affordable and viable infrastructure and services in information and communications technology (ICT) accessible to all. We urge the members of the Commission to be true to their mandate and rule with the interest of the consumers in mind,” said Jess Sandow, Convenor of SLaM.

According to Sandow, their group is intensifying public information campaign nationwide because only the companies and the NTC know about the emerging threat in the telecommunications sector.

“The people should be informed because the franchise is a public domain that should not be the concern of telecommunications companies and the NTC only. We are talking about the impact of this trend that will bring us back to the monopoly regime that made us consumers at the mercy of a single telephone company giant,” explained Sandow.

Sandow said their group is opposing any form of monopoly particularly in public services and utilities to the detriment of the general public and the consumers.

The group earlier welcomed the designation of the Department of Justice (DoJ) to lead the government’s legal battle and the creation of the Office for Competition to promote healthy competition and level the playing field in the market.

SLaM PRESS RELEASE
22 June 2011
REFERENCE:
Jess Sandow, SLaM Convenor
(call or text: 02-781-9227)

Consumer Group Calls on DOJ to Probe Smart-Sun Deal

2011-06-21T22:17:00.000-07:00

In March, PLDT-Smart announced its plan to buy Digitel Telecommunications Philippines Inc. (DTPI), the company that operates Sun Cellular.

Claims NTC Heads for a Possible Approval of the Acquisition

The Samahan Laban sa Monopolyo (SLaM), a consumer group urges the Department of Justice (DOJ) to conduct an investigation on the acquisition of Philippine Long Distance Telephone Co. of Digitel Telecommunications Philippines Inc. (DTPI), a Gokonwei-owned company.

Under the Executive Order 45 of President Benigno Aquino III, Secretary Leila de Lima of the DOJ was assigned as the competition authority of the country. The task of the Office of Competition is to prevent cartels and monopolies as well as protect consumers from offensive business practices.

According to Jess Sandow, covenor of SLaM, their group is requesting De Lima to investigate on the possible approval of the National Telecommunication Commission (NTC) of the acquisition Sun Celluar by PLDT-Smart. The NTC is scheduled to hold a hearing next week and the SLaM is worried that NTC will approve the franchise.

SLaM is hoping that the economy would be protected with the aggression of “monopolistic greed among businessmen” through the EO 45.

The group also initiated an online campaign to encourage the Congress to probe on the deal. Based on the online petition, SLaM said that they are requesting regulators of the government and the Congress to look into the deal as well as its effects thoroughly. SLaM said that consumers could not afford to be locked in on limited service products or be left with no choice.

Earlier, Globe Telecom has called on the government to intercede in the planned acquisition. Globe said that such acquisition would pave way to the return of monopoly in the telecommunications industry.

On the other hand, Malacañang said that the acquisition issue is being conferred in larger groups.

In a senate inquiry about the deal, Senate President Juan Ponce Enrile said that Globe is only sour-graping. Enrile added that the issue is a circumstance “when a loser is complaining against the winner.”

By Catherine Libardo

June 20, 2011

Source URL: consumer-group-calls-on-doj-to-probe-smart-sun-deal

PLDT bucks DOJ intervention

2011-06-21T22:05:00.000-07:00

PHILIPPINE Long Distance Telephone Co. (PLDT) on Tuesday bucked a proposal from second-ranked Globe Telecom Inc. for the Department of Justice to intervene in an ongoing hearing on the merits of the market leader’s looming acquisition of Sun Cellular.

Espinosa said the undue benefit that Globe is trying to extract through a combination of public pressure and political rhetoric flies in the face of the Anti-Graft and Corrupt Practices Act, which prohibits government from giving undue benefit to any private party.

PLDT’s statement came on the heels of Globe’s clamor for the DOJ to investigate and stop the P69.2 billion PLDT-Digitel transaction.

PLDT is about to buy 51.5 percent of Digital Telecommunications Philippines Inc. from Gokongwei-led JG Summit Holdings Inc.

President Benigno Aquino 3rd had ordered the National Telecommunications Commission and other agencies to look into the matter. The President also issued Executive Order (EO) 45, appointing the DOJ as the lead agency that would investigate monopolies and cartel behavior to protect consumers.

“Globe’s latest stunt to take undue advantage of EO 45 is intended to throw the ongoing NTC proceedings into confusion. Globe’s legal counsel is fully aware that EO 45 was not intended to divest the NTC of its jurisdiction and statutory powers as the regulator of the telecommunication sector,” Espinosa however said.

Under EO 45, Justice Secretary Leila de Lima was designated as the country’s “competition authority,” and was mandated to “investigate all cases involving violations of competition laws and prosecute violators to prevent, restrain and punish monopolization, cartels and combinations in restraint of trade.”

Rodolfo Salalima, Globe legal counsel, had said the DOJ should act swiftly to prevent the PLDT-Digitel deal from resulting in a telecom market player so big as to have the power and means to effectively stifle competition.

Salalima said Globe has always warned against the possible return of monopoly as the PLDT-Digitel deal will result in one company cornering the bulk of a very limited spectrum of frequencies.

Jess Sandow, convenor of Samahang Laban sa Monopolyo, said their group is hopeful that EO 45 will effectively guard the economy against the onslaught of monopolistic greed among businessmen while an honest-to-goodness legislation against monopoly is not yet in place.

“With the implementation of measures to promote transparency and accountability in markets, the consumers expect an environment that promotes quality goods and services at prices that are not dictated by unfair trade acts and practices,” Sandow said in a statement.

The group held a picket outside the NTC during the hearing of the merger of PLDT-Digitel.

Besides Globe and SLaM, Eastern Telecommunications Philippines Inc., Sealand Telecommunications Inc. and consumer groups TXTPower and TXTMate are opposing PLDT’s acquisition of Digitel because of the negative repercussions on industry competition and consumer interest.

State-run Philippine Institute for Development Studies earlier said the PLDT-Digitel deal may affect competition because of high entry barriers and the absence of effective competition.

PLDT shares rose to P2,322 apiece on Tuesday from P2,202 last week.

Manila Times
22 June 2011
By Darwin G. Amojelar, Senior Reporter
Source URL: http://www.manilatimes.net/business/pldt-bucks-doj-intervention/

As Congress conducts probe, Globe hits PLDT for frequency monopoly

2011-06-20T06:34:00.000-07:00

Despite the earlier pronouncement of Senate president Juan Ponce Enrile that the legislative department has no business interfering into the acquisition of Digitel by PLDT, members of the House of Representatives have called for a congressional inquiry into the deal.

Globe Telecom, meanwhile, lambasted PLDT for its “monopoly of the frequency highway” and warned the government of “spectrum applicants, speculators and consortia driven by ‘financial players’ who eventually sell out for business gain.”

Rep. Arturo Robes (Lone District, San Jose del Monte City), author of House Resolution 1161, asked the House Committees on Legislative Franchises and Information and Communication to look into the legality of the sale.

Robes also urged the House body chaired by Rep. Marcelino Teodoro (1st district, Marikina) to summon the officials of both companies and those who were involved in facilitating the sale.

Another House member, Rep. Bernadette Herrera-Dy (Party-list, Bagong Henerasyon), filed House Resolution 1169 urging the appropriate House committee to conduct an inquiry into the legality of the “merger” between PLDT and Digitel, which was allegedly in violation of the law granting the privilege to Digitel.

Herrera-Dy quoted Section 11 of Article XII of the Constitution, which she said mandates that “no franchise, certificate or any other form of authorization to operate a public utility shall be granted except to Filipino citizens or to corporations or associations organized under the law of the Philippines at least 60 per centum of whose capital is owned by such citizens.”

“Neither shall such franchise or right be granted except under the condition that it shall be subject to amendment, alteration or repeal by Congress when the common good requires,” Herrera-Dy said.

On December 11, 2002, President Arroyo signed Republic Act 9180 granting a franchise to Digitel to construct, install, establish, operate and maintain wire and/or wireless telecommunications systems nationwide.

“Under Section 16 of RA 9180, it provides that Digitel shall not lease, transfer, grant and usufruct of, sell nor assign its franchise, nor merge with any other corporation or entity without Congress’ prior approval,” Herrera-Dy said.

“Under Section 21 of the Act, it requires Digitel to submit an annual report to Congress regarding its compliance with the franchise’s terms and conditions and its operations within 60 days from the end of the year,” Herrera-Dy added.

PLDT acquired 3.27 billion common shares of Digitel held by JG Summit Holdings Inc., Digitel’s holding company, worth P69.2 billion. The total value of the acquisition, however, is P74 billion including shares from small shareholders which PLDT hopes to buy through a mandatory tender offer.

“The purchase is equivalent to 51.55 per cent of Digitel’s total stocks. Whereas, JG summit would be given 27.6 million PLDT common shares for 2,500 each, which is equivalent to 12.8 percent PLDT shares and entitles the latter to a board seat,” Herrera-Dy said.

“The said sale agreement between the two telecommunication companies is in violation of the conditions provided in the franchise grant given to Digitel thru RA 9180,” Herrera-Dy said.

“It is provided in the franchise law that Digitel shall have no right to sell or transfer its franchise/privilege to any person or corporation nor the controlling interest be transferred without Congress’ prior approval. Apparently, both telecommunication companies disregarded the necessary prior approval of Congress before making the deal,” she said.

“PLDT and Digitel are public utilities which involve public interest. Their franchise is not an exclusive grant of privilege, any amendments made with regard to their franchise or rights should be subject to congressional approval,” Herrera-Dy said.

According to Herrera-Dy, “the oversight power of Congress does not stop upon approval of a franchise but continues to oversee whether the franchise is compliant with the franchise agreement,” Herrera-Dy explained.

For his part, Bayan Muna representative Teddy Casiño, in a privilege speech delivered on Monday, called attention on PLDT-Digitel’s 71-percent market share.

“This abhorrence of monopolies is enshrined in the Constitution. Section 19, Art. XII of the 1987 Constitution states: ‘The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed,’” said Casiño.

The congressman added, “A deal that would reverse the policy of demonopolization (in reference to Republic Act 7925) in the telecommunications industry was certainly not contemplated by previous Congresses and should not be tolerated by the 15th Congress.”

Globe, on the other hand, said the government should ensure there is no imbalance in the distribution of frequency spectrum.

“The PLDT-Digitel deal gives PLDT and its group virtual monopoly and control of the radio frequencies which, compared to the highways, are the modes and means of transmitting voice, data and text messages,” the Ayala-owned firm said.

Citing data from NTC commissioner Gamaliel Cordoba during a recent hearings at the Senate Committee on Public Services, a combined PLDT-Digitel has a 51-percent share of 3G and CMTS (cellular mobile telecommunications systems) frequencies, while Globe has a 23-percent share.

Globe said it serves 27.3 million subscribers with only 99 MHz, while Smart and Sun will serve 60 million subscribers with 372 MHz. “This means Globe is serving 276,000 subscribers for every 1 MHz of spectrum it has while Smart and Sun will only address 161,000 subscribers for their every 1 MHz of spectrum,” the company said.

In the 3G cellular service, the ratio of PLDT to Globe’s allocation is 4.5:1, the company said.

“If PLDT-Digitel is saying they need all the frequency they have with only 60 million subscribers, Globe subscribers are also entitled to a fair share of the State’s frequencies which they should enjoy through better products using more advanced technology. Globe has only 10 MHz to serve 27 to 30 million subscribers, then PLDT should only have 23 MHz for its 60 million subscribers. PLDT should divest of its unused 22 MHz frequency they currently have,” Globe chief legal counsel Rodolfo Salalima said in the Senate hearing.

NTC’s Cordoba said the country only has 6 percent (10Mhz) 3G frequency left for allocation, which is currently under litigation.

Globe said that the assignment of radio frequencies directly relate to the ability of service providers to efficiently use this scarce resource through capital and infrastructure investments.

Posted on 08 Jun 2011 on Newsbytes.ph
Source URL: http://newsbytes.ph/2011/06/08/as-congress-conducts-probe-globe-hits-pldt-for-frequency-monopoly/

Group bucks PLDT-Sun merger

2011-06-20T06:16:00.000-07:00

A big group of consumers yesterday rejected the merger of the Philippine Long Distance Company (PLDT) and Digital Communications Philippines Inc. (Digitel), saying this may create a dominant telecommunications company to the detriment of the public.

The Agricultural Sector Alliance of the Philippines said the merger would allow the company to control over 70 percent of the market and enjoy a huge advantage in having a greater bandwidth granted by the government.

“When that happens, PLDT-Digitel will definitely have control over the telecom market, effectively eliminating competition,” the group, which has some five million members nationwide, said.

Records from the National Telecommunications Company showed that PLDT was allotted a radio frequency bandwidth of 113 megahertz (MHz) for its 45 million subscribers, while Digitel has 42.5 MHz for its 14 million subscribers.

“Clearly, the balance will tilt heavily in favor of PLDT and Digitel, leaving Globe barely hanging on,” AGAP partylist Rep. Nicanor Briones said.

“With PLDT in control, how else would you call that, except monopoly? And when monopoly prevails, it will be back to the good old days of PLDT, but back to the bad old days for consumers—with PLDT pricing its products and services at will and servicing its subscribers when they feel like it,” Briones added.

The group called on the government to judiciously and fairly exercise its regulatory powers to study the true and eventual effects of the merger on subscribers.

Published : Thursday, June 09, 2011

Written by : Hector Lawas

Source URL: http://www.journal.com.ph/index.php/news/national/6956-group-bucks-pldt-sun-merger

Senate hearing on telecoms hit

2011-06-20T06:06:00.000-07:00

MANILA, Philippines — A nationwide anti-monopoly organization Saturday slammed senators who conducted recently a hearing on the PLDT-Digitel deal “more for its media value than to really resolve the issue” even as a party-list representative said he will review the anti-trust resolution now pending in the Senate.

Speaking before the Balitaan sa Aloha Hotel media forum hosted by veteran journalist Lolly Solis, Samahan Laban sa Monopolyo (SLaM) president Jessie Ignacio Sandow also lamented Senate President Juan Ponce Enrile’s censure of one of the leaders of a group opposing the deal.

Sandow, who attended the hearing called by Senate Committee on Public Services chaired by Sen. Ramon “Bong” Revilla Jr., described the hearing as lopsided in favor of those who want the PLDT-Digitel purchase to push through. “It was obvious that from the beginning, the hearing was just a show in favor of the PLDT-Digitel deal,” he said.

The SLaM President also elaborated on the position of his organization last Friday, June 10, in “Candidly Speaking with Willie” over UNTV 37, from 7 to 8 p.m. He presented the plans of his organization to effectively oppose the PLDT-Digitel deal.

Meanwhile, AGAP party-list Rep. Nicanor “Nikki” Briones, who was also a guest in the same forum, said he will initiate a move in the House of Representatives to intervene on the PLDT-Digitel deal with the people’s interest in mind.

“It is important for the people to understand the underlying issues behind this deal and how it will adversely affect them,” he explained.

Briones stressed that he will review the anti-trust resolution filed by Senate President Juan Ponce enrile and sponsor a new anti-trust bill in Congress.

Published on The Manila Bulletin Newspaper Online (http://www.mb.com.ph)

Source URL: http://www.mb.com.ph/articles/322243/senate-hearing-telecoms-hit

The Great Monopolizer

2011-06-20T06:02:00.000-07:00

By: Ding Loguibis

Follow Duterte's lead in curbing PLDT's monopoly

2011-06-14T19:20:00.000-07:00

Globe: Follow Duterte's lead in curbing PLDT's monopoly | Sun.Star

PLDT-Digitel Merger

2011-06-14T02:52:00.000-07:00

By: Ding Loguibis

Solon wants Digitel franchise cancelled

2011-06-09T19:18:00.000-07:00

Solon wants Digitel franchise cancelled

KASALANG SMART-SUN: SINO ANG NAGDIRIWANG?

2011-06-08T19:55:00.000-07:00

Sa kulturang mga Pinoy, lagi nang sinasalubong ng pagdiriwang (handaan, sayawan, kantahan, inuman) ang bawat kasalan sa pamayanan.

Ang kasal kasi, ay hindi lang sumisimbulo sa pormal na pagbubuo ng bagong pamilya, ang batayang yunit ng pamayanang Pilipino, bagkus ay palatandaan ito ng pag-iisa ng mga komunidad. Pag-iisa ng mga pamilyang kinabibilangan ng bawat ikinakasal.

Sa kasalukuyan ay nananatiling epektibong paraan ang kasalan para sa pagpapalawak ng saklaw ng isang pamilya o komunidad, na nagreresulta sa obvious na paglawak din ng saklaw ng pabor, o impluwensyang maaaring ma-enjoy ng bawat kasapi ng pamilya ng lalaki at ng babaeng ikakasal oras na ma-formalize ang kanilang pag-iisang dibdib. Yun nga lang, hindi na ito gaanong ka-pronounced ngayon, bagamat ganun pa rin ang direksyong tinatahak ng bawat kasalan sa kasalukuyan.

Halimbawa, kung ang magulang ng napangasawa ng isa ay doktor, otomatikong mai-enjoy ng kabilang partido ang serbisyo o network ng mga ito sa oras ng pangangailangan, nang hindi nadadaan sa mahabang proseso o kaya’y ng may discount o dilikaya’y libre.

Ganun din sa paghahanap ng trabaho. Kung ang bilas mo ay manedyer ng isang malaking kompanya, natural nauunahin niyang bigyan ng pagkakataong makapagtrabaho ang iyong kamag-anak na iyong mairerekomenda sa kanya.

At kung maaabot lang ng kani-kanilang mga manunulat ang ganitong pagtanaw, ganito ang larawang nais ipinta ng PLDT at Digitel sa isipan nating mga Pilipino.

Ang merdyer nila ay isang “pag-iisangdibdib” na magbibigay ng mas magandang serbisyo sa mga “kapamilya” nila. Mula sa kabuuang 110.5 Mhz radio frequency spectrum allocation ng Smart, magiging 372 Mhz na ito pag natapos ang “kasalan”. Sa mga pahayag na lumalabas sa mga pahayagan nitong mga nakaraang linggo at buwan, ipinangangalandakan ng PLDT, ang kumpanya sa likod ng Smart na ang pagbili nila saDigitel ay mag reresulta sa mas magandang serbisyo sa bawat subscriber ng dalawang entidad.

Ang mga lugar na dating nahihirapan sa signal ng Sun ay magkakaroon na ng mas malinaw na signal. Magiging ‘nationwidesest’ pa sila sa pagsasanib na ito.

Sa biglang tingin, maganda nga ang prospect ng ‘kasalang’ ito. Pero, gaano kalaki ang porsyento ng katotohanan sa mga claim na ito?

Noong unang panahon, ang kasal ay seremonyas ng pag-iisa ng mga kaharian at pagpapatatag ng mga yunit na nasasakupan nito. Ang kasalan noon ay isang political practice. Kaya kung mapapansin ninyo, walang kasalang nagaganap sa mga alipin. At may mga kasalang magkakapamilya din lamang ang nagiging magkabiyak, isang praktikang pagpepreserba ng mga malalaking pamilya sa kanilang kapangyarihang pampolitika at pang-ekonomiya.

Walang lumalayang alipin sa bawat pagsasanib ng mga kaharian. Ang tanging katotohanan ay ito: lumalawak ang kanilang sakop at kapangyarihan, at dumadami ang bilang ng kanilang mga pag-aaring alipin.

Ang pagbili ng PLDT sa Digitel ay may isa pang pang-ekonomikong undertone. Kasabay ng pagkuha nila sa Sun ay ang pag-aari na nila ngayon sa mahigit 15 million subscribers nito dati. Labinlimang milyong Pilipinong mananatiling panggagalingan ng sobrang kita ng kakamalin ng PLDT pag nagging pormal na nilang pag-aari ang Digitel.

Labinlimang milyong karagdagang alipin. At kung kasama ka sa mga ito, mag diriwang ka ba kabayan?

by: Ding Loguibis

Kontribyutor

Senate mulls action over PLDT Digitel mega deal

2011-06-08T00:31:00.000-07:00

BusinessWorld Online Edition |Senate mulls action over PLDT Digitel mega deal

Anti-Monopoly Group warned hideous NTC approval of PLDT/ Smart/ Sun Franchise

2011-06-07T05:37:00.000-07:00

A newly-formed consumer group called Samahan Laban sa Monopolyo (SLaM) urged the Senate investigating the reported merger of Philippine Long Distance Telephone Company and Digitel Mobile Philippines, Inc. (Sun Cellular) to look deeper into the creeping monopoly in the telecommunication industry and possible NTC approval of larger franchise of telecommunication airwaves to a single company despite growing opposition to it.

“We appeal to our good Senators to investigate the recent trend of increasing control of telecommunication franchise by PLDT/Smart that will eventually hamper competition and bring us back to the monopoly regime that made us consumers at the mercy of a single telephone company giant,” said Jess Sandow, Convenor of SLaM.

About 100 members of SLaM trooped to the Senate grounds to convince the members of the Committee on Public Services to uphold public interest and stall the potential harm to consumers of this merger of a very critical public good, such as telecommunication.

Sandow said only an honest-to-goodness legislation against monopoly will guard our economy against the onslaught of monopolistic greed among our businessmen and help establish a springboard for strategic investments and employment opportunities for the people.

“Starting off with this shameless control of the telecommunication industry, SLaM intends to address the apparent disregard of the Constitutional provision to prohibit and regulate monopolies in strategic industries that are of public interest. We have to alert the people and move them into action if the government is failing to implement their part,” explained Sandow.

Based on the data gathered by SLaM, the merger of PLDT/Smart/Sun let them corner 70% of the frequency leaving the other telecommunication companies scavenging for the remaining 30% of the airwaves.

“If the other companies fail to survive this unequal competition, we, as consumers will be left with no other choice but to make do with the remaining giant. They can dictate the price for the delivery of their service which is basically derived from a public domain such as airwaves or frequency. We have to continue to stand our guard especially if the government chose to miss this very important juncture in the country,” added Sandow.

Monopoly tries comeback

2011-06-06T15:32:00.000-07:00

Monopoly tries comeback

PLDT-Digitel Merger : Who Gets To Say It's For the Public Good?

2011-06-05T18:39:00.000-07:00

Philippine law blog: PLDT-Digitel Merger : Who Gets To Say It's For the...: "CURRENT LEGAL CONCERNS 30 May 2011 Atty. Elpidio V. Peria PLDT-Digitel Merger : Who Gets To Say It's For the Public Good? ..."

A tale of two telecom industries

2011-06-05T18:15:00.000-07:00

A tale of two telecom industries

2011-06-05T13:40:00.001-07:00

PLDT-Digitel mega-deal violates law

2011-06-05T13:20:00.000-07:00

PLDT-Digitel mega-deal violates law

PLDT-Digitel merger iligal – solon

2011-06-02T19:34:00.000-07:00

by Meliza Maluntag
for Remate
May 23, 2011

ILIGAL ang pagsasanib ng PLDT-Digitel kung hindi ito dumaan sa Kongreso.

Sinabi ni Bayan Muna Rep. Teddy Casiño na hindi lamang nawala ang kompetisyon kung tataas din ang serbisyo ng telecommunication sa tuwirang pagsasanib ng Philippine Long Distance Telephone Co. (PLDT) at Digital Telecommunications Philippines, Inc. (Digitel) ang operator ng Sun Cellular.

Ani Casiño: “Digitel is not Mang Inasal that can be sold to any Tom, Dick or Harry. It is always subject to the limitations of its congressional franchise and the national interest. PLDT already owns Smart Communications Inc., Red Mobile, and Piltel.”

Kung pinayagan aniya ng National Telecommunications Commission (NTC) ang pagbili ng PLDT sa Digitel ay nangangahulugan na hawak na ng PLDT ang 70 porsiyento ng cellular mobile market.

Ito ay nangangahulugan na nasa 30 porciento na lamang ang hawak ng Globe Telecom.

Ayon kay Casino, ang tuwirang monopolya na ipinagbabawal sa Saligang Batas ng 1987.

Waiting to see action from Senator Revilla

2011-05-31T15:30:00.000-07:00

The Senate Committee on Public Services chaired by Senator Ramon “Bong” Revilla, Jr. called for an inquiry in aid of legislation on May 31, 2011 to exercise its oversight powers of the reported share-swap deal between PLDT and Digitel.

Curiously, in a much-publicized renewal of wedding vows (May 28, 2011) between the Senator and the Honorable Congresswoman Lani Mercado of Bacoor, Cavite, one of their principal sponsors at the nuptials was none other than Manuel V. Pangilinan, current Chairman of the PLDT Group. While we cannot ascertain the depth of the relationship between the Senator and Mr. Pangilinan, we can reasonably presume that the latter’s acceptance of such wedding duties places him in the good favor of Senator Revilla.

Thus, we can only hope and pray that, despite the intertwining of their lives, Senator Revilla and Mr. Pangilinan will not put their relationship in the way of public trust.

When looking into the PLDT-Digitel consolidation, Senator Revilla cannot ignore the threat to fair competition and pro-consumerism wielded by the deal. More important, he should not be pressured and compromised into inaction by personal affinity with the one of the deal’s main proponents. Senator Revilla, Public Services Committee Chairman must be indubitably impartial, and bear the torch of public service high beyond the shadow of doubt.

No to TELCO Monopoly!

2011-05-29T21:12:00.000-07:00

Merdyer: Kanibalismo ng Negosyo

2011-05-29T21:10:00.000-07:00

Nakapanood na ba kayo ng mga palabas sa National Geographic Channel? O sa Discovery Channel kaya? Nakita nyo na ba kung paano kainin ng isang leon ang kanyang kapwa? Kung paano pagtulungang lapain ng mga oranggutan ang kalaban nilang oranggutan din? Ang tawag sa ganito ay kanibalismo.

Ayon sa mga diksyunaryo, ang kanibalismo ay ang sistema ng pagkain sa kapwa, sa kauri, o sa kalahi. Antropopago. Batayang katangian nito ay ang pagpreserba ng kapangyarihan ng naghahari, at hindi ng gutom lamang. Kadalasang nagaganap ang kanibalismo kapag mataas na mataas ang tensyon sa politika at kapangyarihan ng mga hayop.

Nitong nakaraang mga araw lang, natunghayan nating lahat ang isang kaganapang kanibalismo sa Pilipinas. Ang pagkain ng higanteng Smart Telecommunications sa Digitel, ang network sa likod ng Sun Cellular. Isa itong kanibalismo sa negosyo.

Ngunit hindi na bago ang kanibalismo sa negosyo dito sa atin at maging sa buong mundo (naalala nyo ba ang pagkain ng San Miguel sa Magnolia o ang pagkain noon ng Smart sa Piltel?) Sa totoo lang kasi, ang kalakarang ito ay isang paraan ng pagpapanatili ng kapangyarihan ng isang naghaharing negosyo at pagpapalawak ng saklaw nito.

Pero ano nga ba ang epekto ng kaganapang ito sa atin? Habang nagpapalawak ng sakop ang Smart Communications, mas gumagaan ba ang halaga ng serbisyo nito sa atin?

Sa ekonomiyang pampolitika, ang kanibalismong ito o merdyer, ay prekursor ng tinatawag nating monopolyo sa negosyo. Ngayong kinain na ng naghaharing negosyo ang potensyal niyang karibal, wala nang sasalungat sa kanya, wala nang maghahamon sa kanya, at kung gayon ay mas malaya na nitong magagawa ang mga corporate plans nitong nakatuon lamang sa pagkamal ng mas malaking kita.

Ibig sabihin, kung totoo mang may mga bagong serbisyo ang Smart sanhi ng pagkain nito sa Sun, ito’y hindi pa nakatuon sa seryosong pagserbisyo sa ating mga subscriber. Bagkus ay nakadesinyo ang mga bagong serbisyong ito sa pag-engganyo sa mga subscriber na gumastos ng gumastos para magkamal sila ng mas malaking kita.

Ang ganitong katangian ay katangiang monopolistiko. Isang pagsisikap na makontrol ang pinakamalawak na bahagi ng merkado, at kung gayo’y pagkumpas ng malaya sa magiging galaw ng presyo at sistema ng serbisyo.

Kaya kahit pa sabihin nilang sila ang widest, o nationwidest, asahan pa rin nating mahina ang signal ng SmartBro sa ilang lugar, asahan pa rin nating mapagnanakawan tayo ng load, at asahan pa rin nating eengganyuhin tayo nitong sumali sa kanilang mga elektronikong pasugalan, habang nagkakamal sila ng mas maraming salapi mula sa ating bulsa.

At pag nakumpleto na ang proseso ng kanibalismong ito, bubulagain na tayo ng bagong monopolyo sa larangan ng telekomunikasyon. At ihanda nyo na ang bulsa nyo.

Ding Loguibis
Kontribyutor

Malacañang to Look into PLDT-Digitel Merger

2011-05-22T19:56:00.000-07:00

Philippine News Daily
April 13, 2011

MANILA, Philippines – Reports said that Malacañang is now in the process of examining possible implication on the set up merger between the rival telecommunication companies PLDT or Philippine Long Distance Telephone Co. and Digitel or Digital Telecommunications Philippines Inc.

Presidential Communications Secretary Ricky Carandang said that President Benigno “Noynoy” Aquino III has ordered his Cabinet economic team to scrutinize the effect of the said merger to the consumers.

Carandang has explained to the media regarding Malacañang’s move towards the said merger:

“The economic team is studying whether we should issue an opinion on the merger… and see what kind of action can be taken by the government if the merger has an impact on consumers. The President has been asking what impact the merger may have. We don’t want to interfere in the private sector but we are concerned if there is an impact. Right now, we do not have a conclusion to that effect yet.”

Among those that will be examined by the cabinet economic team created by the palace include the fear on augmenting subscribers’ yoke from the absence of competition among the service providers like Smart Communications and Sun Cellular, once the two telephone companies finally merged. If finally approved, then subscribers would have no other options but to stick to a sole network regardless of the quality of services offer.

In the meantime, the Php69.2 billion merger fund is still pending in the National Telecommunications Commission (NTC).

If you are against monopoly go to this link and sign the petition:
Congress Must Investigate PLDT-Digitel Merger Deal

Senator calls for probe into PLDT-Digitel deal

2011-05-22T19:38:00.000-07:00

Sunday, May 22, 2011
Sunstar Manila
Jonathan de Santos/Sunnex

SENATOR Joker Arroyo has filed a resolution directing the Senate to look into a business merger that will give two telecommunication companies 70 percent of the telecoms market.

Arroyo has tasked the Senate committee on public services to find out if a “share-swap deal" between Philippine Long Distance Co. (PLDT) and Digitel Mobile Philippines Inc. is in the public interest.

He also wants the committee to see if the PLDT-Digitel merger is consistent with the franchises granted to them by Congress.]

"As a result of PLDT's previous acquisition of Smart, Talk N' Text (Piltel), and Red Mobile (CURE), together with its most recent deal with Sun Cellular (Digitel), it would control 70 percent of the total cellular subscribers while Globe controls the remaining 30 percent," the resolution read.

According to its website, Smart had 45.6 million mobile phone subscribers by December 2010. Digitel's Sun Cellular, on its website, says it has "more than 15 million subscribers."
Arroyo said the PLDT-Digitel deal "could result in a duopoly" between PLDT Digitel and Globe, and that this "raises the question of whether it is to the public good."

In April, Arroyo said the PLDT-Digitel deal will need the approval of Congress because under Digitel's franchise, it cannot "sell nor assign this franchise or the rights and privileges acquired."
The franchise also prohibits it from merging with another company or transferring controlling interest "without prior approval of the Congress of the Philippines."

But Senate President Juan Ponce Enrile has taken a different view.

In April, he said Digitel already has a franchise, as do PLDT and its subsidiary Smart Communications. He said the deal does not change the franchises given to either company.

"The only thing that happened is that Digitel shares were sold [by the Gokongwei group]," he said.

Enrile said Congress granted the franchise to Digitel, not to the Gokongweis.

In March, Senator Ramon Revilla Jr., chairman of the committee on public services, told the National Telecommunications Commission to give the Senate its position on PLDT's acquisition of Digitel.

"While a change of ownership of corporations is usually ordinary business, telecommunications is imbued with public interest and we must ensure that public interest is upheld in this transaction," he said.

Solons fear monopoly to rise from PLDT purchase of Digitel

2011-05-17T17:09:00.000-07:00

By Gil C. Cabacungan Jr.
Philippine Daily Inquirer
First Posted 00:49:00 03/31/2011

MANILA, Philippines—Lawmakers have cast a wary eye on the purchase by Philippine Long DistanceTelephone Co. of a 51.55 percent share in Digital Communication Philippines Inc., especially on its impact on the lucrative mobile phone business.

“I do not, in principle, object to PLDT’s business expansion knowing the reputation and standards set by its leadership in the corporate world. However, if this purchase is tantamount to killing the competition to the detriment of the whole telecom industry and the consuming public, then I may have some reservations,’’ said Quezon City Rep. Winston Castelo.

On Tuesday, PLDT announced that it was paying P69.2 billion for a majority stake in Digitel which in turn would get a 12.8 percent stake or one board seat in PLDT. The deal is expected to give Smart a commanding 67 percent share of the telecommunications market. The purchase is expected to affect Sun’s low-cost strategy, which has forced Smart and number two player Globe Telecom to cut their margins since it started mobile services in 2003. As of 2010, Sun had 14 million subscribers or a third of PLDT’s 45.6 million cell phone subscribers.

“If this PLDT buyout threatens the economy, puts the interest of the general public in peril, and intimidates an otherwise competitive environment in the telecombusiness, then perhaps it must be evaluated,” said Castelo.

Negros Occidental Rep. Alfredo Benitez said PLDT’s purchase of Digitel – which would combine the number one (Smart) and number three (Sun) mobile phone service providers in the country – has made it more urgent for Congress to pass an anti-trust law to keep markets competitive and prevent the formation of cartels or monopolies that could abuse consumer interest. “We have to rush the enactment of an anti-trust law to determine if the purchase is meant to curtail competition,’’ said Benitez in a text message.

Eastern Samar Rep. Benjamin Evardone was worried that chronic consumer complaints on poor quality of service and the players’ insensitivity to consumer complaints would only worsen with the industry reduced to a two-way from a three-cornered fight. “We hope that the acquisition by Smart of Sun will enhance consumer services even as we have strong reservations and apprehensions that services of telecommunications might deteriorate. As it is, there are already mounting consumer complaints such as overbilling and dropped calls that are not being addressed by the telcos. This should prod the National Telecommunications Commission to intensify its monitoring over the industry players to prevent abuses,’’ said Evardone.

Bayan Muna Rep. Teodoro Casiño expressed concern that Sun Cellular's innovative strategies that helped reduce the cost of services—like unlimited call and text plans and lower rates—would be reversed. “The public has to be wary of potential monopoly practices resulting from this takeover,’’ said Casino.

Castelo said that Congress should look into the terms of the buy-out considering that PLDT practically bought a big market share by “killing a strong competitor.’’

“I still believe that competition, not monopoly, will drive prices in the markets at rates beneficial and affordable to the general public. Government policy is always of the nature of preventing ‘empire building in various market opportunities’ to be virtually dictated by business monopolies,” said Castelo.

SMALL ENTREPRENEURS VS. TELCO GIANT SMART PHILS. INC.

2011-05-16T21:30:00.000-07:00

Thousands of small businessmen represented by their association TELCO ENTREPRENEURS ASSOCIATION, INC . stage a picket rally in front of the SMART TOWER at Ayala Avenue , Makati City on Thursday, May 21, 2009.

They are protesting the the telcos summary dismissal of around 30,000 to 50,000 SMART E-LOAD DEALERS AND SUBDEALERS NATIONWIDE.

Many of them have been part of Smarts eload business since its early years but were recently unceremoniously eliminated in favor of a few companies appointed by Smart.

According to Tea, inc. president Robert Galon, the thousands of Smart Phils. dealers and subdealers now fear future of their families as Smart has effectively killed their livelihood. Tea, Inc. hopes that the government would look into their situation and help them. Prompting them to recently publish an open letter to GMA and our legislators to ask for their help.

NAKAKAPAGOD PERO MALUWAG SA DAMDAMIN DAHIL NAIPAHAYAG NAMIN ANG AMING SALOOBIN.

SANA MAKITA ITO NG GOBYERNO DAHIL MARAMI ANG MAGUGUTOM NA PAMILYA.

ANG MGA MAYAYAMAN AY PATULOY NA NAMAMAYAGPAG NGUNI'T ANG MGA MAHIHIRAP LALONG NAGIGING KAWAWA!

Monopoly 101

2011-05-14T20:34:00.000-07:00

What is a monopoly?
Definition:
Etymology: Latin monoplium, from Greek monoplion : mono-, mono- + plein, to sell; see pel-4 in Indo-European roots
Other forms: mo·nopo·lism (Noun), mo·nopo·list (Noun), mo·nopo·listic (Adjective), mo·nopo·listi·cal·ly (Adverb)

Tagalog: monopolyo

Latin: monopolium

French: monopole

Spanish: monopolio

In economics, a monopoly exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it ...

(Source: en.wikipedia.org/wiki/Monopoly)

When one business or company dominates its area and squeezes out all its competition, the result is the consumer does not have a free choice, and inevitably the price of it's products or services will increase, and the 'Monopoly' increases it's profit. Although, sometimes prices stay low to discourage anyone from entering the market, profit still does occur. Not to be confused with a puremonopoly, where a company has control over the entire market for a product because of barriers to entry, a monopoly doesn't exist with complete control.

However, a monopoly is a philosophical process of direct competition leading to a puremonopoly, it is not in itself a purely dominating force. It is rather, the process of obtaining competitive grounds for a strive toward total control.

(Source: wiki.answers.com)

A monopoly exists where there is only one supplier of a product or service. This allows the supplier to charge higher prices than if there was competition. There are degrees of monopoly and only the market in a commodity is completely free of monopoly pricing power.

What is usually meant by a monopoly is that there is no competition and therefore the supplier has a very high degree of pricing power. If there is no competition, the product being sold should have a price cross elasticity close to zero with any other product. As prices change, volumes sold follow the demand curve for the market; if prices rise, buyers either pay up or do without rather than switching to another supplier.

A market that falls short of monopoly but which also falls short of perfect competition is described as having monopolistic competition or imperfect competition.

Monopolies can arise in a number of ways including:

Legally enforced monopolies on an entire market.

Patents and copyrights: these create (usually very narrow) legally enforced monopolies on particular products or services.

Natural monopolies: this includes many utilities where the cost of building a distribution network makes building more than one uneconomic.

Cartels: agreements by former competitors to cooperate on pricing or market share; illegal in most countries.

Network effects: these can both help create a monopoly and make it difficult to dislodge once established.

Control of access to a market: e.g. if a retailer can buy up all the best sites for distributing a particular product in a particular area they can choke off the competition's access to customers.

It is clearly beneficial for a suppliers to try to reduce competition to their own products as far as possible, this may through differentiation of their products, building barriers to entry and deliberately exploiting network effects.

(Source: http://moneyterms.co.uk)

Features of a Monopoly

When we discuss a monopoly, or oligopoly, etc. we're discussing the market for a particular type of product, such as toasters or DVD players. In the textbook case of a monopoly, there is only one firm producing the good. In a real world monopoly, such as the operating system monopoly, there is one firm that provides the overwhelming majority of sales (Microsoft), and a handful of small companies that have little or no impact on the dominant firm.

Because there is only one firm (or essentially only one firm) in a monopoly, the monopoly's firm demand curve is identical to the market demand curve, and the monopoly firm need not consider what it's competitors are pricing at. Thus a monopolist will keep selling units so long as the extra amount he receives by selling an extra unit (the marginal revenue) is greater than the additional costs he faces in producing and selling an additional unit (the marginal cost). Thus the monopoly firm will always set their quantity at the level where marginal cost is equal to marginal revenue.

Because of this lack of competition, monopoly firms will make an economic profit. This would normally cause other firms to enter the market. For this market to remain a monopolistic one, there must be some barrier to entry. A few common ones are:

Legal Barriers to Entry - This is a situation where a law prevents other firms from entering the market to sell a product. In the United States, only the USPS can deliver first class mail, so this would be a legal barrier to entry. In many jurisdictions alcohol can only be sold by the government run corporation, creating a legal barrier to entry in this market.

Patents - Patents are a subclass of legal barriers to entry, but they're important enough to be given their own section. A patent gives the inventor of a product a monopoly in producing and selling that product for a limited amount of time. Pfizer, inventors of the drug Viagra, have a patent on the drug, thus Pfizer is the only company that can produce and sell Viagra until the patent runs out. Patents are tools that governments use to promote innovation, as companies should be more willing to create new products if they know they'll have monopoly power over those products.

Natural Barriers to Entry - In these type of monopolies, other firms cannot enter the market because either the startup costs are too high, or the cost structure of the market gives an advantage to the largest firm. Most public utilities would fall into this category. Economists generally refer to these monopolies as natural monopolies.

(Source: http://economics.about.com)