DICT’s Rio counters Drilon: Mislatel franchise not revoked
MANILA, Philippines — Information and Communications Technology chief Eliseo Rio on Saturday maintained that the selection process for the country’s third telecommunications player was not faulty, responding to a lawmaker’s claim that the franchise of Mislatel was “deemed revoke” due to violations.
Senate Minority Leader Franklin Drilon on Thursday said the franchise of Mindanao Islamic Telephone Company Inc. — which is part of a consortium that was recently named as the Philippines’ new telco carrier should be deemed void as the company has not operated since it was granted a franchise in April 1998.
The senator also questioned Mislatel’s failure to seek congressional approval when 70 percent of its shares were transferred to new shareholders in 2015.
In a social media post, Rio said Drilon’s remarks were “far from the truth.”
“First, [National Telecommunications Commission], during the pre-qualification period, wrote Congress if the franchise of Mislatel is still valid, and got the answer that on record, their franchise has never been revoked,” Rio said.
“In other words, since there is no declaration of revocation by competent authorities, NTC has no right to consider the franchise as revoked as the presumption of regularity and the validity of the franchise must be respected,” he added.
“Also, the Supreme Court has already ruled that since a franchise is a property right, there must be due process for it to be revoked, notwithstanding the ipso facto provision. A direct action for a quo warranto is the proper action to take. To date, no quo warranto proceeding has been filed by the State against Mislatel,” he continued.
Davao-based tycoon Dennis Uy teamed up with state-run China Telecom to form the Mislatel Group — which the Philippine government had formally declared as the country’s third telco carrier after two rival bids were rejected and foreign players backed out.
Under the consortium’s structure, Uy’s Udenna Corp. and Chelsea Logistics Holdings Corp. own 35 percent and 25 percent, respectively, while China Telecom holds a 40-percent stake. Mindanao Islamic Telephone Company Inc. will act as the franchise holder.
Under the law, Mislatel’s franchise “shall be deemed ipso facto revoked” if it fails to comply with any of the following conditions:
- Commence operations within one year from the approval of its permit by the National Telecommunications Commission;
- Operate continuously for two years; and
- Commence operations within three years from the effectivity of the Act.
Section 15 of Mislatel’s franchise also states the company shall not lease, transfer, grant the usufruct of, sell nor assign its franchise or the rights and privileges “without the prior approval of the Congress of the Philippines.”
Responding to Drilon during a Senate hearing, Nicanor Escalante, Mislatel president and chief executive officer, said since new shareholders acquired Mislatel in 2015, there has been “no actual operation” of the company.
Escalante explained that the “peace and order situation” in Parang, Maguindanao — where Mislatel was given a provisional authority to operate — prevented the company from rolling out its plans.
Escalante also said his group did not seek lawmakers’ nod to change control because “we were just entering as additional shareholders.”
The Department of Information and Communications Technology said the Mislatel consortium will continue completing its post-qualification requirements to obtain its Certificate of Public Convenience and Necessity despite Drilon’s claims. — Ian Nicolas Cigaral
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