3rd telco: NTC hurdles NOW Telecom complaint; gets sued again by PT&T
MANILA, Philippines — A Manila court has junked NOW Telecom’s plea to halt the implementation of certain provisions set by the government in choosing the country’s new telecommunications player.
But just as the government hurdles NOW Telecom’s complaint, it is being sued again by Philippine Telegraph and Telephone Corporation (PT&T), another third telecom aspirant.
In a decision released Tuesday, the Manila Regional Trial Court branch 42 denied NOW Telecom’s prayer for issuance of writ of preliminary injunction.
To recall, NOW Telecom last month filed a case against the National Telecommunications Commission for its supposed insertion of new “money-making” requirements that were not taken up during public consultations on the selection rules.
Among the new requirements, according to NOW Telecom, were the posting of a P700-million “participation security,” P14- to P24-billion performance security and P10-million non-refundable appeal fee.
The provisions that the telecom company questioned were contained in an NTC Memorandum Circular.
In its decision, the Manila RTC said it cannot “lightly” issue temporary restraining orders “on grounds which are less than clear, compelling and juridically profound,” reports said.
“Fight is not over yet,” NOW Telecom’s Mel Velarde said.
“NOW Telecoms will exhaust all its legal remedies with respect to its prayer for an injunction,’ he added.
PT&T case
President Rodrigo Duterte had invited foreign firms, backed by a consortium of Filipino businesses, to take a role in the country’s wireless communications market to stir up competition.
Incumbents PLDT and Globe have said they welcome the new challenger. On Tuesday, the Supreme Court ordered both companies to comment on a petition filed by lawyers seeking the revocation of their "co-use agreement" involving frequencies they acquired from San Miguel Corp.
Under the 27-page NTC memorandum circular, the company with “highest committed level of service” will be picked as the country’s new telco player.
A bidder should have a congressional franchise and a paid capital of at least P10 billion. The participant or one of its members should have experience in the provisioning, delivery and operations of telecommunications services for the last 10 years on a national scale.
The opening of the bid documents is scheduled on Nov. 7, when a “provisional” third telco player will be known.
On Tuesday, the clarity of the NTC’s memorandum circular was questioned anew after PT&T told the stock exchange that it has filed a petition for “declaratory relief” before the Regional Trial Court of Makati City.
This was after the telecom company was reportedly not given a certification by the NTC that it satisfied the required 10-year experience in operating a telecom business on a “national scale.”
Officials of PT&T said the selection process is “discriminatory” against local bidders, particularly the NTC’s clarification that a foreign telco company’s “regional operations” in its home country may qualify as service on a “national scale” — a definition that doesn’t apply to domestic firms.
“The petition involves the proper application and interpretation of the term ‘national scale’ under Memorandum Circular No. 09-09-2018 and its application in favor of PTT,” the company said in a regulatory filing. — Ian Nicolas Cigaral with a report from Kristine Joy Patag
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