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/