Globe seeks revocation of Piltel franchise

Ayala-owned Globe Telecom is calling for the revocation of the congressional franchise given to Smart Communications’ subsidiary Pilipino Telephone Inc. (Piltel) as well as all authorizations and frequencies granted to Piltel for non-operation or non-use.

Globe, which had opposed before the National Telecommunications Commission (NTC) Smart’s all-day texting 258 promo, said Piltel and Smart are still two different carriers with different congressional franchises and NTC authorizations and frequencies.

Smart’s 258 unlimited promo applies to text messages sent from one Smart subscriber to another as well as messages from a Smart to a Piltel subscriber, Piltel to Piltel, and Piltel to Smart, which means that Smart and Piltel do not pay text access charges to each other, unlike those paid to other networks like Globe and Sun Cellular.

Since the promotional scheme was introduced without giving all other mobile carriers the opportunity to at least agree to be a part of it, the promo smacks then of discrimination, as well as cutthroat competition, Globe stressed.

Smart, in its comment to Globe’s complaint filed with the NTC, argued that there is no need for "interconnection" between Piltel and Smart as the former merely uses the network of Smart.

"If this is the case, then the franchise of Piltel and its corresponding authorizations and frequencies should be revoked and recalled. Using this supposition of Piltel/Smart, it would appear that Talk and Text is actually a Smart brand and not that of Piltel. As there is no brand and service operation under its franchise and frequencies, then the Piltel authorizations and frequencies should be revoked and recalled. More particularly, Piltel’s franchise must be revoked for non-operation or "non-use", Globe said in its reply to Smart’s comment.

Globe also noted that the authority given by the NTC in favor of Piltel and Smart is merely one approving Smart’s facilities management, administrative support and customer service management over Piltel. "It does not authorize the merger of Smart and Piltel and thus exempt them from paying access charges to each other," it stressed.

Globe pointed out if there is in fact a merger between the two companies that would exempt them from paying access charges, then this merger is illegal as the same is without any approval from Congress as required by their respective franchises. The Public Service Law also requires that such merger should have the approval of the NTC.

"If we are to follow Smart’s spurious argument, then Smart and Piltel are admitting that they are operating as a criminal combination in restraint of trade. In implementing these promotional offerings only between the two, they are acting in concert to corner the market and thus create a virtual monopoly," Globe said. The Constitution also prohibits combination in restraint of trade.