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/
No comments:
Post a Comment