Telecom firms sever ties with PETEF

Due to irreconcilable differences, the country’s leading telecommunications companies have severed ties with the country’s leading industry association, a move that is expected to result in a demise of said group.

It was learned that members of the Telecommunications Operations of the Philippines (TOP) which include Globe Telecom, Smart Communications, Digital Telecommunications Phils. Inc. (Digitel), Eastern Telecommunications Phils Inc. (ETPI), Express Telecommunications Co. Inc. (Extelcom), Capitol Wireless Inc. (Capwire), Bayan Telecommunications Phils. Inc. (BayanTel), Isla Communications Inc. (Islacom), Philippine Telegraph and Telephone Inc. (PT&T) and the Philippine Global Communications Inc. (Philcom) have unanimously withdrawn their membership from the Philippine Electronics and Telecommunications Federation Inc. (PETEF).

While the Philippine Long Distance Telephone Co. (PLDT) is not a member of TOP, it was learned that PLDT declined an offer by PETEF for its representative to be the president of the latter. It is expected that PLDT will follow the TOP in leaving PETEF.

The TOP members together with PLDT are expected to form a new organization that will include only telecommunications operators.

TOP president Epitacio Marquez, who is president of Capwire, informed PETEF in a letter that the TOP board of trustees unanimously approved to withdraw its membership from PETEF.

"All our members are of one mind that at this time, we need to consolidate our efforts and resources into TOP to better achieve our objectives of delivering better services to the general public as we address the challenges of our ever changing market," Marquez said.

Officials of TOP members said in separate interviews that it is difficult for PETEF to make a stand on very important issues because of the varied interests of its members, which include equipment and network suppliers, Internet Service Providers (ISPs), value-added service providers, among others.

Without the TOP members, PETEF is expected to weaken. "PETEF started out with only the telephone operators as members. The suppliers followed suit because they wanted to have a venue by which they will get to know the operators. Without the telcos, there will be nothing left of PETEF because whether we admit it or not, the telcos have the clout," a former PETEF top official said.

PETEF has also been unable to come up with a common stand on certain issues such as Telepono sa Barangay (TSB) and Voice over IP (Internet Protocol). "Majority of the PETEF members are suppliers who are in favor of the TSB project. It is common knowledge that the carriers are not in favor of the project. How can the federation work effectively if its members share different views on certain issues," TOP members said.

One recent case is that between PLDT and PISO wherein PLDT was being charged by PISO of underpricing and unfair practices, among others. Again PETEF could not make a stand because both are members, the official added.

Globe senior vice president for legal services Rodolfo Salalima, who once served as PETEF president, said for his part that PETEF could no longer take a common stand on ongoing telecom issues.

"With the members having different opinions PETEF can no longer have a common ground. It will be best if TOP concentrate among themselves," Salalima said in an interview yesterday.

For his part, Marquez said that PLDT, who is not a member of TOP, is willing to join TOP in the organization that will soon be formed by them. PLDT vice president Alfredo Carrera confirmed in an earlier phone interview that the industry leader is willing to join in with TOP. "There are ongoing discussions on this but nothing has been firmed up yet,’ Carrera said.