Aquino gov’t towing rivals line, says PLDT
By Darwin G. Amojelar, Senior Reporter
PHILIPPINE Long Distance Telephone Co. (PLDT) on Tuesday said there was “no undue advantage” in its recent acquisition of the operator of Sun Cellular, adding that the Aquino administration should focus on protecting consumers, and not other telecom companies.
“I don’t know what they mean by undue advantage [but] I don’t think so,” Manuel Pangilinan, PLDT chairman told reporters on the sidelines of Manila Electric Co.’s stockholders meeting.
His statement came in the wake of President Benigno Aquino 3rd’s directive to the National Telecommunications Commission (NTC) and the Department of Science and Technology (DOST) to look into any undue advantage in PLDT’s acquisition of third-ranked Digital Telecommunications Philippines Inc. (Digitel).
PLDT earlier said it would purchase a 51.5 percent stake in Digitel held by Gokongwei-led JG Summit Holdings Inc. for P69.2 billion.
“The whole philosophy of regulation is to protect the consumers and don’t protect the rivals. I think, what the government should require PLDT to undertake is . . . to keep the Sun brand, the unli[mited] service and improve it, broadband the population and help the subscribers of Digitel,” Pangilinan said.
“Anybody can compete on that basis. It’s a deregulated environment. Anybody can come in and there’s no barriers of entry,” he said.
Pangilinan said PLDT is prepared to make a commitment to keep the Sun Cellular brand and the service on a continuing basis.
“The unlimited and bucket pricing type of service will continue indefinitely for as long as consumers want it. In fact we will enhance the service of Sun Cellular by connecting to the wider PLDT infrastructure. Our goal here is not to do away with the Sun Cellular service. We will keep it and enhance it,” the executive said.
Lance Gokongwei, Digitel director and president of JG Summit Holdings Inc. said in a statement before a Senate hearing that the deal would benefit the public and as such conforms with its franchise terms, which are founded on public service.
With PLDT’s reach, fiber optic backbone, and stable network quality, Sun’s unlimited service would grow and deliver better service, he said.
“This is the greatest benefit of this transaction, and consumer satisfaction from a bigger and quality network is really what our franchises are for,” he added.
Pangilinan said Globe Telecom Inc., which is blocking the PLDT-Digitel deal, had lost in its bid to acquire the Sun Cellular operator.
“They seem not to object on the transaction provided they get additional frequency from government. Our position there is we’re neutral. If government deems it fit to give them frequency, if that’s what they think, then so be it,” Pangilinan said.
In a separate statement, Rodolfo Salalima, legal counsel of second-ranked Globe, said the telco expresses its deep concern over the serious adverse effects of the PLDT-Digitel deal on free competition and consumer interests.
“Again, this is monopolistic arrogance rearing its ugly head. The right to access and seek legal relief from the courts or quasi-judicial bodies is a perfect right granted by law. PLDT, thus, is out of tune when it accuses Globe of malice when Globe was simply exercising its legal right in law—to uphold free competition and pro-consumerism,” Salalima said.
Besides Ayala-led Globe, Eastern Telecommunications Philippines Inc., Seland Telecommunications Inc. and consumer group TxtPower have lodged their opposition to the PLDT-Digitel deal.
State-run Philippine Institute for Development Studies (PIDS) earlier said the acquisition may hurt competition because of high entry barriers and the absence of effective competition.
Source: http://www.manilatimes.net/business/aquino-govt-towing-rivals%E2%80%99-line-says-pldt/
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Metro Manila has lost a great deal of its luster of old not only because of its failure to keep up with the times in development but also its reputation as a safe destination for family bonding, travelers looking to unwind and relax in a beach or a lake and retirees looking for a life of leisure.
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