FVR warns of PLDT-Digitel deal impact on public

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

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

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

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

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

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

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

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

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!

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

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

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

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&

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SLaM for the sake of the People!

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.