After Dito's antitrust complaint, Globe wants them to pay P622-M penalty

MANILA, Philippines — After Dito Telecommunity Inc. fired the opening salvo yesterday, Globe Telecom Inc. asked regulators to compel the Dennis Uy-led telco to pay P622 million in interconnect penalties on Tuesday.

The move came after Dito filed antitrust complaints against the country’s telco duopoly of PLDT Inc. and Globe on account of various reasons. 

In a statement on Tuesday, Ayala-led Globe noted that an average of 1,000 calls daily are allowed to pass through Dito’s network to Globe users, which were in violation of interconnect rules. Globe described the calls as fraudulent in nature, as the calls were international in origins that were made to appear as calls from local numbers. 

“Clearly, DITO has not only failed to compensate Globe, it also has not taken any serious actions to curtail bypass activities emanating from its network and terminating in Globe’s,” the Ayala-led telco said. 

Globe noted report of these calls continues to pass "illegally" through Dito’s network, insisting that they don’t allow fraudulent calls from their end. 

“Indeed, these bypass activities have not waned but have in fact continuously increased over the said period. DITO’s twin failures to check these bypass activities and pay Globe what it is justly due have worked on a continuing serious prejudice against Globe,” Globe added. 

The Ayala-led telco disclosed that the penalty covers July last year until July 2022, reiterating that Dito’s “adamant refusal” to repay them was in violation of their interconnect agreement on bypass traffic. 

On the other hand, the country’s competition watchdog said they already received two separate complaints from Dito against PLDT and Globe.

Commenting on Dito’s complaints, Terry Ridon, convenor of thinktank Infrawatch PH, said Dennis Uy’s telco should focus on improving its services instead. 

“Dito should focus on improving its own services instead making excuses for its own failures in competing with the country’s leading telcos,” he said. 

The Philippine Competition Commission has 10 days to decide whether Dito’s complaint warrants any action. The PCC’s Competition Enforcement Office, which is investigating the complaints, could file a Statement of Objections against PLDT and Globe if it finds cause.

As it is, Globe cited Republic Act 7925 that made interconnection among telcos compulsory. 

The interconnectivity deal between Globe and Dito allows local voice, text traffic and international calls on roaming, to pass between their subscribers. 

“With today’s report on Dito’s refusal to pay interconnection penalties arising from allegedly fraudulent calls, Dito’s anti-competitive claims would appear baseless, as the leading telcos have every right to refuse dealing with non-compliant contractual partners,” Ridon added.