Globe official warns of ‘return to monopoly’ after merger
If the merger of two major telecommunications firms will push through, its competitor Globe Telecoms will ask the National Telecommunications Commission to regulate the frequencies of the merged companies – the Philippine Long Distance Telephone Co. (PLDT) and Digitel Telecommunications Philippines Inc. – to level the playing field and to protect the interest of consumers.
Lawyer Rodolfo A. Salalima, external legal counsel of Globe Telecom, said during a press conference recently that Globe had to make a stand on the merger to protect consumers.
“On the deal itself we have no question. We are opposing the bid because of its implications, because of it’s effects to the consumer. With the merger, they will hold majority of the frequencies and will give them enough control. With that we will revert back to the old monopoly called PLDT, which used to be the only telecommunications player in the country until a Cebuano took a stand in front of the Senate in the 90s and asked that the industry be deregulated to encourage competition,” said Salalima.
Salalima said that Globe Telecom holds 10 megahertz frequencies out of the 55 active frequencies leaving 45 megahertz to PLDT and Digitel once these firms would merge.
“Globe has 26 million subscribers and is able to do so much. It offers many services to its subscribers and was able to compete. PLDT and Digitel have 45 megahertz which can already service 120 million subscribers. Our population is only 90 million, why would they need that amount of frequency?” he asked.
Salalima said that PLDT and Digitel combined would only need 22 megahertz to service their combined subscriber base leaving 23 megahertz supposedly free.
“Now what we are asking is for them to surrender their extra 23 megahertz to NTC and for NTC then to equally distribute this to all the players. That way they can regulate and still ensure a level playing field for the industry and protect the interests of the consumers,” he said.
Globe’s proposal would be discussed on a May 23 hearing. The firm was also trying to influence Congress to strengthen the Anti-Trust Law also known as Republic Act 7925.
On March 29, PLDT and JG Summit Holdings, which owns Digitel, announced the approval by their respective Boards of Directors of the merger that will leave PLDT with a major share of 51.55 percent.
