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.

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

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

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

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

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

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

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

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.

“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,” Ray Espinosa, head of PLDT Regulatory Affairs and Policy said in a statement.

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

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

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

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

By: Ding Loguibis

Follow Duterte's lead in curbing PLDT's monopoly

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

PLDT-Digitel Merger

By: Ding Loguibis

Solon wants Digitel franchise cancelled

Solon wants Digitel franchise cancelled

KASALANG SMART-SUN: SINO ANG NAGDIRIWANG?

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

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