CA junks PLDT motion to ban Globe in Bonifacio Global City

MANILA, Philippines - The Court of Appeals (CA) has dismissed the motion filed by the Philippine Long Distance Telephone Co. (PLDT) seeking to prohibit Globe Telecom from providing telecommunication services within Bonifacio Global City (BGC).

In a 15-page decision, the CA ruled that PLDT’s case against Globe and the National Telecommunications Commission (NTC) lacked merit, prompting the CA to deny the petition of PLDT and its co-petitioner, Bonifacio Communications Corp. (BCC), a firm that was granted the exclusive right to install, construct and own the necessary communication infrastructure within the BGC.

PLDT forged an agreement with Fort Bonifacio Development Corp. (FBDC) in 2002 which gave PLDT the right to be the area’s exclusive telecommunications and data provider in exchange for the company purchasing a 75 percent stake in the BCC.

As it could not set up its own IT hub within BGC, Globe brought the case before the NTC, forcing the regulator to release Memorandum Circular (MC) 05-05-2002 declaring BGC as a free zone where any duly franchised public telecommunications entity will be allowed to provide high speed networks and connectivity.

After the issuance of MC 05-05-2002, PLDT sued NTC and Globe before the Quezon City Regional Trial Court (QCRTC) on the argument that “exclusivity is an industry practice and is not an abnormality.” Both the NTC and the QCRTC ruled against PLDT, with NTC pointing to it as a grave violation of its mandate to promote non-discriminatory universal access to telecommunications facilities. In January this year, PLDT elevated the case to the CA.

On April 25, 2011, Globe, through unit Innove Communications, filed its comment on the case filed by PLDT that seeks to ban all Globe services from the BGC before the CA’s 10th Division. In its comment, Globe argued that it is in the public’s best interest that open access and free competition among telecom operators be allowed at the BGC.

Part of CA’s decision on the case is its disagreement with PLDT’s argument that BCC is a private corporation and not a public telecommunications entity, and therefore should not be governed by NTC’s jurisdiction. BCC, by its own admission, is engaged in the business of providing telecommunication infrastructure and other related services. With this claim, the CA ruled that BCC should be under the jurisdiction of the NTC as a telecommunications service provider.

Republic Act 7925 constitutes NTC as the principal administrator with regulatory and adjudicatory powers over all public telecommunication entities. NTC is also empowered to enforce the provisions of relevant telecommunications laws, rules and regulations against any person or entity, be it public or not, acting alone or in concert with a public utility.

“We are very happy with the decision of the CA to dismiss PLDT’s case against us,” said Froilan Castelo, head for corporate and legal services group of Globe. “At the end of the day, Globe is after the welfare of the consumers, where they are empowered to choose their preferred telecommunications provider. Gone are the days when the market is dominated and controlled by a single operator. Consumers of today should be given the opportunity and freedom to choose their operator of choice in the spirit of level playing field and free competition.”

Globe had called on regulators to arrest the impact of the impending merger of PLDT and Digitel, which is set to close by Aug. 26, pending approval by the NTC. It had been moved twice from the original June 30 closing date, following opposition from several stakeholders.