MANILA, Philippines - Express Telecommunications (Extelcom) has paid over P95 million in spectrum users fees and spectrum regulatory fees, including interests and penalties, in what is widely believed as a move to start afresh in preparation for an upcoming sale to San Miguel Corp.
The amount was paid to the National Telecommunications Commission (NTC).
SMC is reportedly planning to use Extelcom as its vehicle for the former’s entry into the cellular mobile telephone service (CMTS) business. Extelcom is the first mobile phone licensee in the country, using analog technology, but its failure to keep up with technological changes, including the use by its competitors of the digital technology, rendered Extelcom’s service obsolete. After the buyout, Extelcom plans to shift to digital.
The planned sale however may face rough sailing. The Lopez controlled Marifil Holdings Corp., which claims to still own 46 percent of Extelcom, said it will oppose the planned sale by TransDigital Extel to SMC of its stake in Extelcom.
Marifil lawyer Ariel Tuybayan said they will pursue all legal remedies to reverse what they claim is an illegal dilution of their shares in Extelcom, from 46 percent to eight percent. “Marifil is prepared to go all the way to the Supreme Court,” he added.
NTC documents show that from 2002 to 2006 alone, Extelcom had accumulated around P87.8 million in unpaid spectrum user’s fees SUF) for its cellular mobile telephone service (CMTS) and microwave facilities.
The amount includes surcharges for non-payment of the SUF for the CMTS facilities which can go as high as 50 percent of the unpaid amount.
NTC said Extelcom had been given until August this year to settle the amount. “We welcome Extelcom’s effort to bring up-to-date all of its regulatory payments,” NTC commissioner Ruel Canobas said.
The NTC recently warned violators that it will not only impose heavy fines to non-complying telecommunications companies and broadcast firms, but will also closely scrutinize their networks.
Meanwhile, Marifil yesterday reiterated that the rehabilitation plan for Extelcom should be voided as it diluted the shareholdings of Marifil from 47 percent to eight percent without the latter’s consent. Marifil is majority owned by Lopez Group-owned Bayan Telecommunications (Bayan).
“There is no law that allows the dilution of a shareholder holding 47 percent of the shares of a company without its consent. Even the law governing corporate rehabilitation, Presidential Decree 902-A, does not allow the dilution of a shareholder holding 47 percent of a corporation’s equity without its consent,” Tubayan said.
He added that the Corporation Code requires a shareholder vote for any dilution.
Tubayan said documents filed with the Court of Appeals show that Trans Digital’s rehabilitation plan did not restructure the debts of Extelcom but merely converted disputed advances into equity without complying with the requirements of the Corporation Code.
Marifil contended that Trans Digital’s rehabilitation plan merely paved the way for the latter to profit from the sale of its illegally acquired equity stake, thus benefiting only Trans Digital as a “vulture investor”.
The CA has dismissed Bayan’s alternative rehabilitation plan for Extelcom but Bayan has asked the appellate court to reconsider its decision.