PLDT opposes Globe acquisition of Bayantel

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) has opposed the planned takeover of Lopez-owned Bayan Telecommunications Holdings Inc. by Ayala-led Globe Telecom Inc.

In a verified opposition filed before the National Telecommunications Commission (NTC), PLDT represented by ACCRALAW is blocking the joint application of Globe and Bayantel for the approval of a debt-to-equity transaction.

The transaction would allow Globe to acquire a 56.6 percent interest in the cash-strapped Bayantel.

Once approved, Globe and Bayantel would be able to utilize each other’s property, services, infrastructure including radio frequencies.

If granted, PLDT warned that the transaction would circumvent well-established rules on allocation of frequencies.

PLDT argued that the transaction contravenes Republic Act 7925 or an act to promote and govern the development of the Philippine telecommunications and delivery of public telecommunications services as well as the laws and rules on assignment and allocation of radio frequencies.

PLDT pointed out that Globe that currently accounts for 32 percent of the cellular market as against PLDT’s 68 percent stands to acquire a grossly disproportionate amount of frequencies in relation to subscribers.

It added that Globe would have control over 22.5 megahertz (MHz) of the 1800 MHz 2G bandwidth as opposed to PLDT’s 37.5 MHz, 50 MHz, and 2500MHz 4G bandwidth and 35MHz.

“In turn, Globe is allowed to control a grossly disproportionate amount of frequencies in relation to its number of subscribers, this would stifle the capabilities of other telcos which would have to strain the frequencies allocated to them thus making it more difficult to provide better services to their subscribers,” PLDT said.

The dominant carrier argued that Globe does not need the frequency spectrum assigned to Bayantel as its subscriber to frequency ratio is significantly lower than that of PLDT.

Globe would have access to Bayantel’s 50MHz for 4G frequencies on top of its existing 45MHz while PLDT through Smart and Digitel only has access to 35Mhz of frequencies in 4G bandwidth.