PLDT says Globe just sourgraping

Manila, Philippines - Telecommunications leader Philippine Long Distance Telephone Co. (PLDT) has accused Globe Telecom of raising issues against PLDT’s recent acquisition of a majority stake in rival Digital Telecommunications Phils. Inc. (Digitel) to gain leverage and exact concessions from PLDT.

PLDT regulatory affairs and policy head Ray Espinosa said Globe has resorted to “regulatory blackmail” and wants to use the National Telecommunications Commission (NTC) to deliver these concessions to Globe “on a silver platter.”

He added that Globe is just sourgraping on the bid it lost. “This is just a negotiating tactic. If it’s not regulatory blackmail, it’s regulatory free ride that they want,” Espinosa said.

Espinosa noted that the monopoly issue being raised by Globe is a ruse and is meant to weaken the resolve of the NTC to approve a deal that will bring enormous benefits to the public in terms of better service and accelerated high-speed broadband internet service throughout the country.

“It is clear from Globe’s letter (to the NTC) that they want concessions. Concessions to make up for their own inefficiencies. And this at the public’s expense,” he said.

Espinosa emphasized that Globe speaks of monopoly even as it, and its controlling shareholder (Ayala group), has institutionalized combinations in restraint of trade.

He noted that property development projects, residential and commercial, of Globe’s controlling shareholder are exclusive to Globe and Innove. “Neither PLDT nor any other telco can provide telephony and DSL services to these exclusive enclaves. These cozy arrangements are illegal,” he stressed.

Espinosa said Globe is just “cherry-picking” on what information to disclose in accusing the telecom firm of monopolistic or anti-competition practice.

“They are actually the most inefficient network if you base it on subscribers per network, which should be the basis of efficiency in frequency allocation,” he pointed out, in response to Globe’s call for the NTC to review frequency allocations, allegedly lopsided in number in favor of the PLDT group.

He said PLDT’s frequency utilization of 406,000 subscribers per megahertz of frequency is much higher than Globe’s 303,000 per megahertz. PLDT has 45.64 million subscribers using a total of 112.5 megahertz of mobile and broadband spectrum while Globe has only 26.5 million users utilizing 87.5 megahertz of frequency.

Espinosa added that Sun Cellular, which has about 14 million subscribers, is more efficient in using its 42.5 megahertz of mobile and broadband frequencies.

“Their motivation in questioning frequency allocation is they basically want the NTC to cure their inefficiency. What Globe wants is for the government to protect them,” he said.

Earlier, PLDT spokesperson Ramon Isberto pointed out that Globe is criticizing PLDT for a deal that Globe itself had sought, but failed to get. “It is now pressing government for concessions to make up for a bid it lost,” he said.