NTC drops Globe request to stop hearings on PLDT-Digitel deal

The National Telecommunications Commission (NTC) on Wednesday denied the motion of second-ranked telecom player Globe Telecom Inc. to suspend the hearings on the share-swap deal of its two chief competitors. In an order, NTC's legal department head Dennis Babaran said the Supreme Court's (SC) recent decision on foreign ownership of Philippine Long Distance Telephone Co. (PLDT) has "not yet attained the status of finality." PLDT wants the regulator to approve its P69.2-billion deal with Digital Telecommunications Philippines Inc. (Digitel), operator of the Sun Cellular brand. In June, the SC ordered the Securities and Exchange Commission to look into the ownership and control make-up of the telecom firm, after it ruled that 64 percent of PLDT, by way of its common stocks composition, is owned by foreign entities. Ayala-led Globe earlier called on the NTC to halt the hearings due to this ruling. “PLDT cannot legally buy the initial 55.55 percent of the controlling capital or voting shares of Digitel because PLDT is not a Philippine national or a legal domestic public utility but a foreign corporation as held by the Supreme Court in its recent PLDT ruling," Globe said. SC ruling not yet final The NTC shut down this argument with its order on Wednesday, saying the SC's ruling is not yet final and executory. "Hence, it does not as of yet form of Philippine jurisprudence on which to base the suspension of proceedings, much less the dismissal of the instant case," Babaran said. For its part, Globe said it expected the regulator's ruling, but that they will seek a motion for reconsideration "if warranted." PLDT, meanwhile, said that given this development, they expect the hearings to end next Monday, when Globe will conclude its presentation of witnesses. Originally, PLDT had planned to close its deal with JG Summit Holdings, Inc., mother company of Digitel, on June 30, but delays in the NTC proceedings forced them to push the deadline back to the end of the month. Eastern Telecommunications Philippines Inc. and Sealand Telecommunications Inc. are also opposing the PLDT-Digitel deal, citing anti-competitive repercussions. Consumer groups such as TXTM8 Consumer Group Tayo Inc., Samahan Laban sa Monopolyo and TXTPower.org have tried to block the deal due to its possible effects on prices of mobile phone calls and text messages. —JMT/VS, GMA News