PLDT accuses Globe of attacking its franchise

MANILA, Philippines - Philippine Long Distance Telephone Co. (PLDT) has accused rival Globe Telecom of launching a collateral or indirect attack against its congressional franchise, which it said is a violation of its right to due process.

PLDT noted that in his affidavit on direct examination, Globe regulatory head Froilan Castelo asserted that the Supreme Court ruled that PLDT is a foreign corporation and is therefore not qualified to buy Digital Telecommunications Philippines Inc. (Digitel).

Globe earlier filed a motion to suspend proceedings by the National Telecommunications Commission (NTC) on Digitel’s acquisition by PLDT on the ground that the SC has already ruled that PLDT is not a Philippine national but a foreign corporation.

But the NTC dismissed the motion, saying the SC decision is not yet final and that several respondents in the case filed their motions for reconsideration and other pleadings only late last week.

“Hence, it does not as of yet form part of Philippine jurisprudence on which to base the suspension of proceedings, much less the dismissal of the instant case. Fact is the NTC is not even a party in the said SC proceedings... Neither PLDT, the NTC, nor any of the parties in the hearings are parties in the Supreme Court case,” PLDT said.

On Globe’s claim that PLDT has refused to interconnect with Globe/Innove despite the latter’s repeated demands and that PLDT has dragged its feet in implementing the One-Province-One-Rate (1P1R) rule, under which landline calls within a province shall be treated as local calls, PLDT said it has, in fact, entered into various interconnection agreements with various telcos, including Globe. 

Globe national carrier relations head Melvin Santos in his affidavit before the NTC noted that Innove has been in discussion with PLDT on various issues pertaining to their (PLDT and Innove) existing interconnections as well as establishment of new local interconnections throughout the Philippines for several years now and there is no improvement on their discussions. 

“While Innove is very keen and sincere in its desire to resolve all these issues that would lead to the smoother and faster implementation of local interconnections nationwide, PLDT have unjustly and unjustifiably refused to address these issues. Despite several follow-up requests, PLDT continued and still continues to delay interconnection,” Santos said. 

For its part, PLDT said it is currently interconnected with Globe in 10 major areas/provinces, namely: the whole of Greater Metro Manila, Batangas, Cavite, Cebu, Iloilo, Roxas, Negros Oriental, Negros Occidental, Leyte and Bohol. In the additional 31 areas being sought by Globe, it was Globe that requested PLDT to prioritize eight locations that are deemed workable. PLDT and Globe have agreed on the locations and schedules for commercial activation. The remaining 23 areas, which had been agreed to be negotiated next year, have problems that are beyond the control of Globe and PLDT (e.g. permit difficulties),” PLDT noted.

It pointed out that interconnection requires a physical connection between the fixed facilities of operating telcos and that there may be variables beyond the control of the operators such as right-of-way issues, permits, structural barriers and even equipment compatibility.