Natl interest is prime in planned PLDT-Digitel merger – Malacañang

“National and consumer interests" is the prime factor in deciding what actions should be taken with the proposed merger of Philippine Long Distance Telephone Co. and Digital Telecommunications Philippines Inc.(Digitel), Malacañang said on Thursday. Globe Telecom Inc. late Wednesday said it wanted the government to intervene in PLDT's planned purchase of Digitel, the owner and operator of mobile telco Sun Cellular. Presidential spokesperson Edwin Lacierda said the country's economic managers and the Justice Department are studying the PLDT-Digitel deal. "So, wala pang desisyon ang Presidente. It's still being discussed in larger groups," he added. The Ayala-led Globe claimed that there would be a possible return of a monopoly should the purchase of Digitel is consummated. Announced last month, the planned acquisition was supposed to be consummated by the end of next June. Under the P69.2-billion deal, PLDT will acquire a 51.55-percent equity in Digitel — a wholly owned unit of Gokongwei-led JG Summit Holdings Inc. According to Globe, the government should enact antitrust laws to promote free trade and business competitions. On Thursday, Globe asked the National Telecommunications Commission to act quickly given its mandate to protect consumers and level the playing field under Republic Act 7925, or the Public Telecommunications Policy Act. Passed in 1995, the law was specifically written to break the monopoly PLDT enjoyed at the time, Globe said. The PLDT-Digitel merger would give PLDT a 70-percent share of the mobile telecommunications industry, leaving Globe with 30 percent. — VS, GMA News