THERE won’t be any deal between Philippine Long Distance Telephone Co. (PLDT) and Digital Telecommunications Philippines Inc. (Digitel) by their target deadline of June 30.
On the second day of the hearing held at the National Telecommunications Commission (NTC), the agency scheduled further hearings until the second week of next month.
“It was Globe [Telecom Inc.] that requested this, and we are giving them the opportunity to cross-examine our witnesses because we have nothing to hide,” said Ray Espinosa, PLDT head of regulatory affairs and policy, in an interview after Wednesday’s hearing.
Lawyer Rodolfo Salalima, Globe legal counsel, informed the NTC that he will be out of the country.
PLDT will present its fourth and last witness on Thursday, after which the counsels of Globe and other opposing parties can cross-examine PLDT’s witnesses.
The NTC has set tentative hearings from July 5 to 7 and from July 12 to 14.
“We still can’t say when we will be able to finish it. It depends on the complexity of the case, and the legal division is not the only department that will be involved. We still have to refer the case to the commissioners,” said NTC legal head Dennis Babaran.
Espinosa said PLDT could neither urge nor impose the regulators to act swiftly on the case. PLDT and Digitel are seeking regulatory approval for the former to acquire a majority stake in the Gokongwei-controlled phone firm. Without the green-light from the NTC, PLDT and Digitel could not close the transaction valued at P69.2 billion.
“We will just play it by the ear because we don’t want to set another target deadline,” said Espinosa, when asked of the target date for the closing of the transaction.
But it should not take long for the NTC to decide, he said, adding, this is just a “simple matter, and there is no legal complication.”
“The decision-making process should not take a long time because this is not a complicated matter. It’s not like applying for a provisional authority or CPCN [certificate of public convenience], which take so long. The facts and documents have all been submitted and we have fully established that there is a share and purchase agreement,” said Espinosa.
Seeking the NTC’s nod is not the only requirement that should be met. PLDT and Digitel still have to secure certain approvals from the Securities and Exchange Commission and the Philippine Stock Exchange.
“But the NTC approval is the crucial one. We may obtain other regulatory approvals by June 30,” Espinosa said.
PLDT already obtained its shareholders’ approval on June 14, when they voted overwhelmingly in favor of the telecom company’s investment in Digitel during the annual stockholders’ meeting.
Meanwhile, a newly formed consumer group, Samahan Laban sa Monopolyo (SLaM) urged the NTC to uphold public interest in the ongoing hearing and to rule in favor of the consumers and stop the impending monopoly.
Jess Sandow, convener of SLaM, said the group is opposing any form of monopoly particularly in public services and utilities to the detriment of the general public and the consumers.
TXTM8 Consumer Group Tayo Inc., meanwhile, lauded the issuance of Executive Order 45 by President Aquino designating the Department of Justice as the competition authority.
Globe, in a statement, said PLDT once again chose to obscure the real facts by presenting witnesses who were incompetent to testify on facts related to the transaction.
The cellular firm was referring to the financial controllers who essentially prepare and sign-off on financial documents.
“We are no closer to understanding the real deal. By their own admission, PLDT’s witnesses could not relay details of the transaction in question since they are beyond the scope of their professional function. Why PLDT put such witnesses on the stand is a mystery,” said Globe.
