Jinggoy seeks probe of telco

MANILA, Philippines - Senate President Pro-Tempore Jinggoy Estrada last Wednesday sought for an inquiry, in aid of legislation, over the alleged violations of a telecommunications company called Altimax Broadcasting Inc. in leasing its franchise to another entity.

Estrada also called on the National Telecommunications Commission (NTC) to recall the radio frequencies “illegally held by Altimax and to immediately stop the illegal leasing of Altimax’s allocated radio frequencies to Innove   (Communications Inc.)”

“This, the NTC should do unless we allow it to continue to be a party to these irregularities,” the senator said.

The senator noted that Altimax was granted by the NTC provisional authorities to “install, operate and maintain a nationwide direct broadcast satellite” (DBS) service and a multi-channel multipoint distribution system (MMDS), both on Dec. 29, 2000 until June 29, 2002. The provisional authorities were extended for three years up to June 29, 2005.

Estrada accused Altimax of violating its franchise in a privilege speech on Wednesday.

Estrada also questioned the NTC orders dated June 23, 2009 and Aug. 14, 2009 where the commission extended the provisional authorities of Altimax for its MMDS and DBS services up to June 29, 2012. 

“This despite the clear, uncontroverted decade and that franchise of Altimax, by its very terms, had long been ipso facto revoked,” Estrada said.

According to Estrada, the NTC cannot “lawfully grant or extend” the provisional authorities of an entity that legally has lost its congressional franchise.

“Certainly the NTC does not have the power to grant franchise to Altimax. Only Congress has that power,” the senator added.

Estrada’s move came amid the questions raised by the Philippine Long Distance Telephone Co. (PLDT) over Globe Telecom’s alleged “illegal” lease of its frequencies to Innove Communications that was cited in the 2010 financial statement of Altimax.

Estrada also questioned why Altimax has unilaterally leased its assigned frequencies to third parties for purposes other than those specified in its franchise.

The PLDT and Globe Telecom are at loggerheads over PLDT’s acquisition of a majority of the shares of Digitel.

Estrada noted that Altimax entered into a memorandum of agreement with a company called Innove Communications Inc. (Innove) where Altimax earned between P70 million to P90 million for 2009 and 2010. 

As a result, Innove has deployed over 95 transmitters nationwide for the provision of WIMAX services to Innove customers.

“This arrangement is a flagrant violation of the franchise of Altimax, which specifically prohibits the assignment or lease of its rights and privileges acquired under the said franchise,” Estrada said.

Estrada said that by leasing its bandwidth to Innove, Altimax has arrogated unto itself the very authority vested upon Congress of the Philippines.

“The fundamental law of our land and our duty as legislators call on us to act accordingly today to correct this anomaly, lest we form part of the problem,” Estrada said.