NTC to continue hearing on PLDT-Digitel deal next week

The National Telecommunications Commission (NTC) will continue next week its investigation into the acquisition of mobile telco Sun Cellular by the Philippine Long Distance Telephone Co. (PLDT), according to NTC legal department head Dennis Babaran. PLDT is seeking NTC approval of its P69.2 billion acquisition of a 51.5 percent stake in Digitel, the parent company of Sun Cellular, which is owned by JG Summit Holdings Inc. The next set of hearings is scheduled for July 12, 13, and 14, Babaran said. He also explained that Globe Telecom Inc., TxTMate and Sealand Telcommunications Inc. —all of which are opposed to the deal— will be given the opportunity to present their respective witnesses. "After that, the Commission will evaluate the case for another two weeks," Babaran said. Rodolfo Salalima, Globe's legal counsel, said that he has three witnesses lined up to testify against the PLDT-Sun merger. Salalima said that the deal is not beneficial to the public and to the industry, and Globe's witnesses will prove PLDT's monoply on frequencies and their lack of interconnection with other telecom networks. In a statement, the Samahang Laban sa Monopolyo (SLaM) urged the NTC to focus on PLDT-Digitel’s combined share of frequency holdings, which supposedly constitutes a de facto monopoly of the telecommunication sector. “The people have to see its true monopolistic character as PLDT insists on hiding through this masquerade. PLDT’s tools due to excessive hold in the wide range of telecommunication spectrum, abuse of its pivotal control of interconnection and their refusal to heed Internet Protocol (IP) Peering will checkmate the competition and leave the consumers with hardly any other option," Jess Sandow, SLaM convenor, said. Studies would show that Smart and Sun would enjoy a gargantuan 372MHz for their 60 million subscribers, Sandow said. Sandow said that Smart and Sun combined hold a total of 374MHz for their 60 million subscribers, whereas no more than 224MHz should be assigned in order to maintain a level playing field for competitors. Ray Espinosa, PLDT's head of Regulatory Affairs and Policy said, "We're hopeful that our application will be approved by the NTC before the end of the month." He stressed that the merger is beneficial to both subscribers of Smart Communications Inc. and Sun Cellular. The PLDT aims to complete the regulatory approval for the PLDT-Digitel deal by the end of the month, extended from June 30. — TJD, GMA News