Gov't urged to weigh pros, cons of PLDT-Digitel deal

CEBU, Philippines - ZTE whistleblower Jose “Joey” De Venecia III has urged the government to weigh the pros and cons on the PLDT-Digitel deal.

“The government must carefully weigh the pros and cons of PLDT’s purchase of rival Digital Telecommunications Phils. (Digitel) in order to protect the rights of the Filipino consumer,” said de Venecia.

De Venecia, who is an information technology businessman, said that if the government would allow the purchase, PLDT would then have a “virtual monopoly” of the telecommunications industry “just as it did in the past.”

He said that whatever benefits can be gained from this merger, it is “far outweighed by the risks of one company lording it over a key industry.”

“One dominant player can crush the opposition, lower industry standards and dictate fees to consumers in the absence of real competition,” said De Venecia.

With the proposed merger of Smart and Sun, Globe would be left with a small 30 percent market share while the PLDT-owned company would control the remaining 70 percent.

The merging may have promised gains like lower rates and discounts to its subscribers, but these are only “short-term” as the long-term effects “could be devastating.”

If that happens, de Venecia said PLDT, which will then hold 70 percent share in the market will either buy out the last remaining competitor, “or cripple it through price cuts forcing it to shut down.”

“Either way, we will be back to the monopoly that we had in the past, when the telecoms service we had was far from world-class,” he said.

“Monopolies are not just bad for the economy. They are dangerous,” De Venecia said.

Meanwhile, the National Telecommunications Commission has been holding hearings to determine if the Smart-Sun merger will be approved. — THE FREEMAN