My last column on the P69.2-billion PLDT-Digitel share-swap deal (Omerta, April 29 issue) agreed for the most part with the position of Globe Telecommunications Inc. that the government should take steps to prevent Philippine Long Distance Telephone Co. (PLDT) from becoming a monopoly in the telecoms industry for the second time around.
Globe has formally asked the National Telecommunications System (NTC) to reallocate the broadband frequencies now in PLDT’s hands as an antitrust measure. The lion’s share of those frequencies are with PLDT now that it has absorbed the Digitel deal. It is the NTC’s duty to maintain a level playing field as provided for in Republic Act 7925.
I’ve always maintained that this is an equal-opportunity column. In the interest of fairness, therefore, I am quoting the substantive portions of the reactions of PLDT officials to Globe’s allegations.
(Globe has told the NTC that the telecommunications industry in the country is on the verge of being overrun or completely dominated by PLDT. It said the concentration of most of the available frequencies in PLDT’s hands gives the latter all the means to stifle all competition.)
PLDT’s side
PLDT chairman Manny V. Pangilinan, on the charge that its takeover of Digitel’s Sun Cellular effectively eliminated the stiff competition Smart Philippines was facing in the business, said:
“I don’t think competition will disappear. We will keep Digitel as a separate company. This is not a merger. We will maintain the unlimited and bucket-priced services of Sun Cellular.”
Pointing out that competition is not just in the Philippines, he said the union with Digitel was needed to better equip PLDT against the changing landscape and onslaught of Internet companies such as Facebook and Skype.
Napoleon Nazareno, president and CEO of PLDT, also said:
“We expect competition to remain robust, given other operators who are formidable and well-funded. We would also have to face growing competition from so-called over-the-top service providers or those that offer social networking, instant messaging and VoIP services.
PLDT’s regulatory affairs and policy head, for his part, said the monopoly issue raised by Globe was “a ruse” to weaken the NTC’s resolve to approve a deal that would give enormous benefits to the public in terms of better service and accelerated high-speed broadband Internet service throughout the country. “This is just a negotiating tactic, if not regulatory blackmail. It’s a regulatory free ride that Globe wants.” He added:
“It is clear from Globe’s letter to the NTC that it wants concessions; concessions to make up for its own inefficiencies….”
James Sullivan, head of Asia Telecom Research at J.P. Morgan, said, “Singapore does not see Globe, PLDT’s nearest competitor, at the losing end of the PLDT-Digitel deal.
Sullivan said that, on the contrary, Globe stands to benefit from less competition. Sullivan explained that, on the one hand, the industry structure has become far more stable, which is positive for industry participants. “One can argue that this is positive for Globe because it gets the benefits of an improved industry structure without having to pay the price.”
Murder rap most foul?
Will the Department of Justice (DOJ) please investigate persistent reports that some politicians are trying to influence the outcome of the murder case of radio broadcaster and environmentalist Gerry Ortega?
What’s disturbing is that these politicians have been buying off both witnesses and investigators of the National Bureau of Investigation (NBI) to pin the blame on my friend, former Palawan governor Joel T. Reyes. Reyes, of course, has been formally implicated in the killing of Ortega on January 24, 2011.
Apart from vehemently denying any participation in the killing of journalist Ortega, Reyes told me these two politicians have shown undue interest in the murder case from the very start. Their efforts seem to have paid off, and now he is a principal suspect in the case as the alleged mastermind.
The two politicians who allegedly showed such extraordinary interest in the murder case are among the most prominent and powerful in Palawan politics. They also happen to be the former governor’s arch-rivals in past electoral contests in the province.
While Reyes has shown me affidavits of witnesses identifying the two prominent Palawan politicians, I’d rather leave it to the DOJ to determine the veracity or truthfulness of such sworn statements.
Suffice it to say that Reyes believes these two politicians are out to destroy him politically by trying to make the murder rap stick despite his avowed innocence. Reyes explains that both politicians have not forgiven him for their bitter defeat in the 2001, 2004 and 2110 gubernatorial elections.
In the 2004 elections, he played a big role in the defeat of one of the two politicos, who is also a prominent businessman. In the 2004 gubernatorial contest, murder victim Gerry Ortega was one of two candidates who had lost to Reyes.
Reyes told me that making the murder rap stick would upset the balance of power in Palawan politics. This is the biggest possible motive behind the alleged machinations to make him look like a cold-blooded murderer.
As I said, I’d rather commend the case into thine hands, Madame Justice Secretary Leila de Lima.
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