Just doing his job

Amidst reports of the impending removal (whether true or not) of Commissioner Angelito Alvarez from the Bureau of Customs, here is a rundown of some of his accomplishments in his 11 months stay at BOC, as culled from the BOC website. This may help P-Noy decide whether Alvarez should go or not, for doing nothing about smuggling activities that were consummated years before he was appointed to the BOC post.

Collections of the Bureau of Customs (BOC) grew 17.7 percent year-on-year to P259.2 billion in 2010. Collections have benefitted from the vigorous implementation of the Run After The Smugglers (RATS) programs at the BOC as well as administrative reforms undertaken by Alvarez.

From January to April 2011, Customs increased its collections by 2.04 percent to P85.06 billion from P83.35 billion year-on-year. Of the figure, cash collections were up 13.48 percent to P83.53 billion from P73.61 billion.

Customs cash collections in April 2011 were up by 13.12 percent to P21.39 billion, but non-cash collections declined by 72.79 percent to P1.05 billion from P3.87 billion due to lesser importation of rice by the government. Overall, Customs take declined by 1.46 percent to P22.44 billion from P22.77 billion in the same month last year.

Compared to program, Customs’ actual April take is short by P2.75 billion as both cash and non-cash collections were below target by P2.35 billion and P0.4 billion, respectively.

Alvarez said reforms are continuously being undertaken in his bureau. These include the strengthening of the Valuation Reference Information System to ensure proper customs valuation and correct tariff classification; maximization of the utilization of scanners; the National Single Window initiative; strengthening seizure operation on the warehousing sector; and close coordination with LTO to monitor importation of cars to improve the efficiency of the agency.

No to further delays

The dynamism of the local broadcast industry is owed to the aggressiveness of its players. As networks compete head on, we see a plethora of free-to-air programs explode in front of us – that is, from our TV sets.

It is one major proof that, indeed, competition benefits the consumers. Without it, networks will be complacent and will not innovate.

This competitive spirit comes into play once more with the country’s looming migration to digital television broadcasting which will usher in a new era for the Filipino viewing public with more channels, better reception and more information to empower them.

The migration to digital terrestrial TV (DTT) will likewise be a boon to the economy, with advertising spending increasing with more channels being introduced, not to mention the jobs to be created in the process.

Fact is, the world has gone digital from analog many years ago – from the simplest things as watches, to telephones and mobile networks, and now, TV broadcast.

Many of us can remember how the country has seamlessly switched off from analog to digital cell phone networks way back in the 90s. However, it will probably not be exactly the same thing when we migrate from analog to digital TV; it might take many years before the Philippines can switch off its analog TV networks. The US took 10 years to do it.

That’s probably why the more proactive industry players have been all out in supporting the National Telecommunications Commission’s (NTC) target issuance of the rules on digital TV migration by next month. They know that time is of the essence as digital migration will be done in phases, and will take a long time to finish.

Sadly, some members of the industry even want the NTC to move a step backwards and review once more the digital TV technology options, citing more superior but expensive technology out in the market. Sources, however, say that this standard is not what the Philippines needs as TV households have to buy more pricey set-top boxes just to be able to tune in to digital broadcast.

Interesting revelations

One of the more interesting revelations from the Senate hearing on the controversial PLDT-Digitel deal last Tuesday was that Globe Telecom had itself tried to acquire Digitel. This admission came after intense questioning by Senate President Juan Ponce Enrile first of Globe lawyers and then of Lance Gokongwei of the JG Summit Group.

Asked point blank whether Globe’s attempt to buy Digitel had preceded PLDT’s deal which was signed March 29, Globe legal counsel Rudy Salalima said there had been “informal talks”.

Unsatisfied with the responses of Salalima and fellow Globe lawyer Froilan Castelo, Enrile turned to Gokongwei who admitted there had been discussions about a possible buyout. He disclosed there here had been four or five meetings between Globe and Digitel officials stretched out over three to four months. Together with Digitel chairman and CEO James Go, Gokongwei had talked with the Zobel brothers, Jaime Augusto and Fernando, in one of these meetings.

The talks ultimately unraveled because there was “no meeting of minds about the price.”  A few months after, the Gokongweis struck a deal with the group of Manny Pangilinan.

This led to Enrile’s conclusion that this is a situation where the loser is complaining about the winner.

The hearing also revealed a similarity between the PLDT-Digitel deal and the 2001 acquisition of Isla Communications (Islacom) by Globe.  Both were share-swap deals. In the Islacom transaction, Islacom shareholders were paid Globe shares. As a result, Globe acquired 100 percent control of Islacom.

Globe sought approval of the deal from the National Telecommunications Commission (NTC), the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE). But it did not seek congressional approval.

PLDT director and head for regulatory and policy affairs Ray Espinosa stressed that the Digitel and Islacom transactions were indeed mirror images. He stopped short of asserting that the Digitel deal should also not be subject to congressional approval.  But the implication was clear.

As the old saying goes:  What is good for the goose should be good for the gander. 

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