MERGED: Smart buys Digitel (Sun Cellular)

[ong76win2]

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Telco asks NTC to closely scrutinize the PLDT-Digitel deal
By JAMES A. LOYOLA
May 23, 2011, 11:47pm

MANILA, Philippines — Sealand Telecommunications Co., Inc. is asking the National Telecommunications Commission (NTC) to impose stricter or heavier regulatory provisions on Philippine Long Distance Telephone Company and Digital Telecommunications Philippines Inc. (Digitel).

Meanwhile, consumer group TXT Mate has asked the NTC for an extension to file a comment regarding the acquisition since it would like to participate in the public hearing primarily because the planned merger between PLDT and Digitel is of significant importance to the subscribing public.

“The affected parties here are not only the telecom giants and the government but consumers who will bear the long-term, possibly even irreversible effects of this merger,” said TXT Mate spokesman Marcelino Veloso III.

In its comment to the acquisition of PLDT of a majority stake in Digitel, Sealand said imposing greater obligations on PLDT and Digitel as compared to those imposed on other carriers as a competitive policy will help protect the industry and consumers.

Sealand said PLDT’s acquisition of Digitel will create a firm which will effectively control a commanding 70 percent share of and, with Digitel, PLDT will have a radio frequency spectrum of 155 MHz, which is 84 percent of the total usable radio frequency spectrum.

Because of this, Sealand said PLDT-Digitel will have market power that can be exercised to the detriment of consumer welfare and overall industry performance.

It said imperfect competition gives rise to a market failure which can often result in a monopoly that can result in predatory pricing, low quality of calls (especially to other networks), slow innovation of technology and inefficient delivery of products and services, and other similar behavior that reduces consumer welfare.

Furthermore, by having an overwhelming market share of mobile subscribers, the new PLDT-Digitel entity will be able to dictate terms and conditions that can effectively restrain competition such as by increasing interconnection rates, Sealand said.

Source: Telco asks NTC to closely scrutinize the PLDT-Digitel deal | The Manila Bulletin Newspaper Online

[ong76win2]

Globe renews call for intervention by NTC
Asks regulator to reduce PLDT-Sun frequencies

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Source: Globe renews call for intervention by NTC | Inquirer Business

Please post your comments and reactions. Thank you.

[legal_cd]

hopefully this means better telecom service

[YJOB]

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[ong76win2]

PLDT, Globe continue to bicker over former’s takeover of Digitel
By EMMIE V. ABADILLA
May 24, 2011, 11:10pm

MANILA, Philippines — The bickering goes on between the country’s telecom duopoly, Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. over PLDT’s P69.2-billion takeover of 51.55 percent of Digital Telecommunications Philippines Inc. (Digitel).

PLDT and Digitel is seeking National Telecommunications Commission (NTC) approval for the deal, expected to be concluded next month, which will enable PLDT to have 70% share in the mobile phone market.

However, in the NTC public hearing this week (May 23, 2011), Globe harped on the transparency of the deal, pointing out that todate, PLDT and Digitel have not shown opposing parties a copy of their Sale and Purchase Agreement.

“Without the actionable document, there is nothing to be approved,” argued Globe legal counsel Rodolfo A. Salalima. “Why are they hiding it?”

The PLDT counsel stressed before the NTC hearing officers that ‘Issues of commercial terms should be privy only to the contracting parties (in this case, PLDT and Digitel). Globe is not a party to the transaction.’

In this case, the ‘actionable document rule’ does not apply maintained Ray Espinosa, PLDT director and Head of Regulatory Affairs and Policy.

PLDT seeks NTC approval only because it is acquiring more than 40 per cent of Digitel and has already made the required disclosure to the Securities and Exchange Commission (SEC) as well as the Philippine Stock Exchange. Hence, the documents of the transaction are already open to the public.

“Globe opposes the Digitel investment, not based on principle or out of concern for consumer interest.

They want to hostage the Digitel deal to get our radio frequencies for free,” Espinosa pointed out. “By raising the false issue of monopoly, Globe wants the government to give it free radio frequencies at the expense of PLDT and other telecom players.”

Other firms and consumer groups present during the public hearing were Sealand Telecommunications Co. Inc., Eastern Telecommunications Philippines Inc. (ETPI), TXTPower and TXTMate.

NTC ordered PLDT and Digitel to provide documents to the opposing parties and allowed ETPI, TXTPower, and TXTMate to file their opposition to the deal by today (May 25, 2011). However, the dates for the succeeding hearings will still be scheduled, according to NTC Commissioner Gamaliel A. Cordoba.

Source: PLDT, Globe continue to bicker over former

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PLDT says Globe wants 'special privileges'
By Mary Ann LL. Reyes, The Philippine Star
Posted at 05/25/2011 7:49 AM | Updated as of 05/25/2011 7:49 AM

MANILA, Philippines - Though it claims to be asking for a “level playing field” by opposing Philippine Long Distance Telephone Co. investment in Digital Telecommunications Phils. (Digitel), Globe Telecom is actually engaged in a campaign to secure for itself “special privileges” from the government, according to a senior PLDT official.

“By raising the false issue of monopoly, Globe wants the government to give it radio frequencies for free – at the expense not only of PLDT but also other telecom players,” according Ray Espinosa, PLDT director and head of regulatory affairs and policy.

Espinosa was reacting to the opposition to PLDT’s investment in Digitel filed by Globe during a hearing of the National Telecommunications Commission (NTC) Monday.

Globe filed with the NTC a motion to intervene in the application for the sale and transfer to PLDT of an initial 51.55-percent equity in Digitel. The case refers to the joint application of PLDT and Digitel seeking regulatory approval for PLDT’s purchase of Digitel.

In its motions, Globe questioned the alleged lack of transparency of the PLDT-Digitel deal since to date, the transacting parties have yet to furnish industry stakeholders with a copy of their sale and purchase agreement.

“Plainly, without the actionable document, there is nothing to be approved. Too, evidence suppressed raises the strong presumption that said evidence is adverse to the suppressors,” Globe said.

Globe pointed out that in relation to their transaction, PLDT and Digitel have only submitted press releases that in very broad strokes, discuss purchase price and conversion of shares, bonds, and certain debt covenants. “However, no details are provided. As public utilities, PLDT and Digitel are imbued with public interest, and their transaction at hand should be subject to thorough scrutiny. Without the sale and purchase agreement, the public is kept in the dark, and begs the question, ‘What are PLDT and Digitel really up to?” it said.

In its formal motion to oppose, PLDT said that Globe asked the NTC to take 22 MHz of radio spectrum currently assigned to PLDT and Digitel and to reassign these frequencies to Globe.

“That is what all this noise is about. Globe’s opposition to the Digitel investment is not based on principle or out of concern for consumer interest. They want to hold hostage the Digitel deal so that they can get for free radio frequencies that PLDT and Digitel are already using to serve their customers. These frequencies are being used properly and efficiently to serve millions of subscribers,” Espinosa said.

To “level the playing field”, Globe seeks now to degrade the quality of services to millions of subscribers currently being served by PLDT and Digitel. Globe wants the government, through the NTC, to step in and fix Globe’s inefficiencies and thereby restore its competitiveness – which it lost by reason of its own inefficiencies and the superior services offered by its rivals. What Globe seeks therefore is contrary to well known principles of competition and free market.” Espinosa added.

He added this will undermine the objectives of the Digitel investment which include optimizing investments in new technologies like LTE or fourth generation mobile technology that will help bring broadband Internet services faster to more areas of the country, he said.

“Through this substantial investment in Digitel and through its accelerated capex program, PLDT is committing considerable resources in order to make good its pledge to bring better services to more Filipinos,” Espinosa said.

The motions filed by Globe urged the NTC to ensure a level industry playing field in the spirit of fair competition. Globe had previously written the NTC, warning that the consolidation of PLDT and Digitel is riddled with potential threats to industry sustainability and consumer welfare.

It said the NTC must pro-act to guarantee equitable distribution of spectrum, the lifeblood of cellular operators.

“As it stands for 3G resources alone, without government intervention, the PLDT-Digitel deal will already result in unfair proportioning of radio frequencies – 4.5 to one in their favor versus Globe. Threatened further by monopolistic tendencies to be exacerbated by more market power post-merger, industry must be guaranteed the enforcement of interconnection rules, mandated by law, but still elusive after all these years. Further, Globe urged anew development and implementation of policy for Internet Protocol (IP) peering, similar to traditional interconnection though now specific to the internet space,” it noted.

In another development, Sealand Telecommunications Co. Inc. is asking the NTC to impose stricter or heavier regulatory provisions on PLDT and Digitel,

In its comment to the acquisition of PLDT of a majority stake in Digitel, Sealand said imposing greater obligations on PLDT and Digitel as compared to those imposed on other carriers as a competitive policy will help protect the industry and consumers.

“PLDT’s acquisition of Digitel will create a public telecommunications entity which, despite PLDT’s avowed intent to keep operations separate, will effectively control a commanding 70-percent share of the telecommunications market, as compared to the mere 30 percent held by its nearest, not to mention only remaining, competitor,” Sealand said.

It added that, with its acquisition of Digitel, PLDT effectively adds Digitel’s 42.5 MHz of radio frequency spectrum to the 112.5 MHz that it already holds or controls, thus giving it a total of 155 MHz, which is 84 percent of the total usable radio frequency spectrum.

Because of this, Sealand said the acquisition would create an industry with imperfect market competition since PLDT-Digitel will have market power that can be exercised to the detriment of consumer welfare and overall industry performance.

It said imperfect competition gives rise to an market failure which can often result in a monopoly that can result in predatory pricing, low quality of calls (especially to other networks), slow innovation of technology and inefficient delivery of products and services, and other similar behavior that reduces consumer welfare.

Furthermore, by having an overwhelming market share of mobile subscribers, the new PLDT-Digitel entity will be able to dictate terms and conditions that can effectively restrain competition such as by increasing interconnection rates which would render other carriers incapable of offering competitive prices for their own services.

To prevent this, Sealand proposed that the NTC require PLDT-Digitel to: provide detailed performance monitoring reports to competitors and regulators regarding the performance of their networks and operational systems; negotiate with other carriers and under the supervision of the NTC, performance standards and enforcement mechanisms covering all major aspects of OSS operation and network performance; allow operator-to-operator operational systems (OSS) testing in response to competitor requests, with a further obligation of providing evidence to the NTC that OSS functions could meet demand for resold services and unbundled network elements; and offer interconnection, unbundled network elements and transport and termination services at rates based on reasonable and mutually-agreed upon forward-looking economic cost;

It also asked the NTC to require both companies to comply with such one-time conditions and on-going requirements that would curtail or minimize anti-competitive behavior as commission may impose; divest a portion of their assigned frequencies to be reallocated by the NTC; and divest some of their overlapping operations, products and/or services.

Source: PLDT says Globe wants 'special privileges' | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features

[ong76win2]

Aquino presses for investigation of PLDT-Digitel merger

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Source: Aquino presses for investigation of PLDT-Digitel merger | Inquirer Business

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Aquino orders telecom rivalry probe
By MADEL R. SABATER
May 28, 2011, 8:57pm

MANILA, Philippines — President Benigno S. Aquino III has directed the National Telecommunications Commission (NTC) and the Department of Science and Technology (DoST) to look into the complaints of telecommunication firms on alleged unfair competition.

Aquino also said his administration is against any form of monopoly, saying that the policy of administration is to ensure that all Filipinos will be able to benefit.

He, however, said he was not pertaining to the PLDT-Digitel merger.

“There are complaints from other players in the telecoms, there are a lot of technical aspects, so I’ve asked both NTC and DoST to look into the allegations,” Aquino said.

“The portion that I remember has to deal with the allocated frequencies and being adjacent to each other providing an undue advantage,” he said. “[If] cost will be severely cut by this purported merger… nobody will be able to compete.”

“I’m waiting for DoST and NTC to come up with their findings whether or not this will limit competition and if it does limit competition you have a near monopoly,” he added.

“At the end of the day, what will benefit most Filipinos should be the policy of this administration. Should be and will be,” he said, saying that this does not only apply to the telecommunications industry but also to other industries.

“Pinangako natin level playing field and if that is the case — it results in just one entity — then we’re back to the problem of our telecommunications before where it’s so difficult to get even the lines,” Aquino said.

Recently, Globe Telecom called for a level-playing field but Malacañang assured that the Aquino administration will decide on the possible merger of Philippine Long Distance Telephone Co. (PLDT) and Digitel “based on national interest.”

President Aquino, in April, ordered a review of the possible merger between PLDT and Digitel, which runs Sun Cellular.

Globe Telecom had claimed that the possible merger might compromise competition in the telecommunications industry.

It also expressed concern that the P74.1-billion possible merger would allegedly monopolize more than two-thirds of the industry’s revenues.

Source: Aquino orders telecom rivalry probe | The Manila Bulletin Newspaper Online

[icon_king]

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[kajrot1]

May unta d mag mahal looy rapd tong igo ra pang load ang allowance..