MERGED: Smart buys Digitel (Sun Cellular)

[ong76win2]

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Globe questions PLDT-Digitel contract
By EMMIE V. ABADILLA
April 27, 2011, 9:49pm

MANILA, Philippines – Globe Telecom formally filed a petition before regulators on Wednesday questioning the Philippine Long Distance Telephone Co. (PLDT) and Digital Telecommunications Inc. (Digitel) deal as a ‘return to the dark ages of the old monopoly’ but PLDT maintained that Globe is just sour-graping for a deal it has lost.

“We expect the government, particularly the National Telecommunications Commission (NTC), to act now on the PLDT/Digitel deal by implementing regulations to protect the gains of the telecommunications law (R.A.7925), the fair and free competition and the public welfare.”

This was the statement which Globe Counsel Rodolfo A. Salalima made in its petition to the NTC.

However, “Globe is criticizing PLDT for a deal that Globe itself had sought but failed to get,” countered PLDT spokesperson Ramon Isberto. “It is now pressing government for concessions to make up for a bid it lost.”

Globe insists that the recent acquisition by PLDT of majority control of Digitel undermines the foundation of the law which liberalized and de-monopolized the telecommunications services in the country.

“With so much clout, significant market power and influence now consolidated and vested in the PLDT group, free competition is threatened and ultimately the public good is gravely placed at risk,” he warned.

Neither PLDT nor any other public utility has a constitutional right to a monopoly position the Globe counsel maintained.

Hence, Globe Telecom wants the government and regulators to step in the merger deal.

“The NTC must intervene and act now. It cannot and must not shirk from its legal obligation to intervene in the PLDT/Digitel deal and regulate, if not forestall, the deal’s grave implications and impact on free competition and, in the long term, the common good,” Atty. Salalima concluded. “The inherent police power of the State can and must also be utilized for the “common good.”

Source: Globe questions PLDT-Digitel contract | The Manila Bulletin Newspaper Online

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[ong76win2]

Natl interest is prime in planned PLDT-Digitel merger – Malacañang
JESSE EDEP, GMA News
04/28/2011 | 04:26 PM

“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., 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

Source: Natl interest is prime in planned PLDT-Digitel merger – Malacañang - Business - GMA News Online - Latest Philippine News

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[unsungheroes]

Sun for great savings

[ong76win2]

NTC sets PLDT-Digitel deal hearing on May 23
05/05/2011 | 04:10 PM

The National Telecommunications Commission (NTC) has set May 23, a Monday, as the date it will hear the request of telecoms giant Philippine Long Distance Telephone Co. (PLDT) to approve the latter's acquisition of Gokongwei-led Digital Telecommunications Philippines, Inc. (Digitel).

In a notice of hearing, the NTC has likewise requested parties opposed to the petition to appear and file their verified opposition to the request.

"Failure on the part of any affected party to file their opposition on time of the scheduled hearing shall be construed as a waiver of their right to be heard and the Commission shall proceed to hear and decide the petition on its merits," the Commission added.

PLDT entered into a share-swap deal in late March with JG Summit Holdings, parent company of Digitel, to acquire an initial 51.55% equity worth P69.2 billion in Digitel.

Groups have called the move "anti-competition" since it brings the telco market back to its duopoly days, clamoring for the NTC to intervene in the deal.

Second-ranked Globe Telecom, one of those more vocal about their opposition to the deal, had earlier called on the government to intervene, saying "[it] should act to preserve the competitiveness of the industry."

If the deal pushes through, PLDT will own roughly 70% of the local telecommunications market, leaving Globe with a paltry 30%.

It had also asked the NTC to redistribute frequencies from PLDT in order to "level the playing field."

Malacañang earlier said that national and consumer interest should reign over the proposed deal and that it had asked its economic managers and the Justice Department to study the deal. — TJD, GMA News

Source: NTC sets PLDT-Digitel deal hearing on May 23 - Technology - GMA News Online - Latest Philippine News

[arf2]

nindut ni pero mayunta d hilabtan ang rates sa sun sa smart

[ong76win2]

Globe: PLDT-Digitel deal violates rules
Friday, May 13, 2011

CEBU CITY -- Mobile operator Globe Telecom said the Philippine Long Distance Telephone Company's (PLDT's) acquisition of Gokongwei-owned Digital Telecommunications Philippines Inc. (Digitel) 3G spectrum circumvents a government circular.

National Telecommunications Commission's (NTC's) circular on the Rules and Regulations on the Allocation and Assignment of 3G Radio Frequency Bands sets criteria to be used in the selection of the qualified public telecommunications entities.

Lawyer Rodolfo A. Salalima, counsel for Globe Telecom in a letter sent to NTC on May 3, quoted section 3.5 of the circular, "Entities with more than 50 percent of common stocks owned by the same person or group of persons shall be considered as associated applicants, at the time of application, and such entities shall be allowed to elect one of them to proceed in the filing of application (for 3G and 3G radio spectrum) before the Commission."

Salalima, in the same letter, said the PLDT/Cure/Smart/Digitel group could not have been assigned the totality of their present individual frequencies if the circular has been followed.

But with the circumvention of the NTC circular, the frequency assignments is now at a ratio of 1:4.5 3G in favor of the PLDT group, Salalima stated.

"For a group to control virtually all the powerful frequency spectra, a scant resource owned by the government, was never the intent of the government/NTC from the very start because of free competition," Salalima added.

Globe serves 26.5 million subscribers with only 99 MHz, while Smart + Sun shall effectively serve 60 million subscribers with 372MHz.

Therefore, Globe serves 268 thousand subscribers with every 1 MHz of spectrum, whereas Smart + Sun will only address 161 thousand subscribers with every 1 MHz of spectrum.

Globe said that theoretically, Smart + Sun should not be assigned more than 224 MHz of spectrum (vs 372 MHz post-consolidation) to cater to 60M subscribers.

Globe Telecom, in a position paper, asked NTC to implement pre-emptive moves and regulations to level the playing field, which is the very essence of Republic Act 7925, or the new Telecoms Policy Act.

The NTC will start hearing PLDT-Digitel deal application on May 23 and Globe, according to Salalima, will appear to oppose it. He said there is a need to maintain a fair and free competition in the market.

Salalima clarified that on the deal itself, Globe has no opposition. "We are not saying that the deal is legal neither are we saying that the deal is illegal."

He said the opposition is anchored on the implication and effects of the PLDT-Digitel deal to the consumers.

The PLDT-Digitel deal, which is still pending review, would give PLDT a 70 percent share of the mobile telecommunications industry.

PLDT officials in earlier reports dismissed Globe's claim in its position paper, saying the telco is selective in its disclosure.

Smart has an average of 406,000 subscribers for each of its 112.5 allocated frequencies, compared to Globe's 303,000 subscribers on 87.5 frequencies. (Mildred V. Galarpe/Sunnex)

Source: Globe: PLDT-Digitel deal violates rules | Sun.Star

Please post your comments and reactions. Thank you.

[arf2]

napalit na wala pa?

[ong76win2]

napalit na wala pa?

It must be approve first by the Government and NTC. There would be a public hearing on this on May 23, 2011.

[ong76win2]

Digitel deal to benefit consumers: PLDT
By Mia A. Aznar
Monday, May 16, 2011

AS A rival telco opposed the acquisition of the Philippine Long Distance Telephone (PLDT) Co.’s acquisition of Digitel Telecommunications Philippines Inc., officials from PLDT assured the merger will benefit consumers.

PLDT Chairman Manuel Pangilinan said that the combination of PLDT, the mother company of Smart Communications, and Digitel, which powers Sun Cellular, is geared toward “enhancing consumer welfare.”

During the recent presentation of PLDT’s first quarter performance, Pangilinan said that the acquisition of Digitel will provide benefits to PLDT and its shareholders.

“We reiterate that we see no reason why the telecommunications industry will not remain just as competitive as it is today, given the benefit of the free entry of new players and the high level of competence and financial resources of present and future players,” Pangilinan said.

The company believes that the government and the regulators will “adhere to the principle of protecting the consumer—rather than protecting rivals—in assessing the merits of the Digitel transaction.”

Pangilinan said the government should make sure that there is no barrier to the entry of new players and that customers remain contestable, which means competitors are free to market to customers of competitors.

Globe Telecom expressed its opposition to the merger, saying they want the consumers to benefit by advocating free market competition.

Globe wants an even frequency distribution, citing the cellualar frequency ratio currently at 1:3.5, in favor of PLDT’s 60 million subscribers as opposed to Globe’s 26.5 million.

Globe fears free market competition will be sacrificed if the merger is approved and the industry will revert to a monopoly instead.

PLDT, though, feels otherwise.

“We expect the transaction to benefit the general public through improved affordability and higher levels of service quality and coverage. We have also repeatedly stated that we plan to keep Digitel a separate entity and continue unlimited types of offerings so as not to deprive Filipinos of the affordable services that they require,” Pangilinan said.

The completion of the transaction between PLDT and Digitel needs the regulatory approvals of the National Telecommunications Commission, the Securities and Exchange Commission (SEC) and Philippine Stock Exchange.

PLDT filed its petition with the NTC last April 20 and the first hearing has been set for May 23. It has also made the necessary filings before the SEC.

Published in the Sun.Star Cebu newspaper on May 17, 2011.

Source: Digitel deal to benefit consumers: PLDT | Sun.Star

[ong76win2]

Good news from San Miguel. Please go to my other thread regarding this. Thank you.

https://www.istorya.net/forums/politi...ngs-inc-3.html