Smart, Globe battle heats up
The group of businessman Manuel V. Pangilinan has launched a counterattack against Ayala-led Globe Telecom, saying that the government should recall radio frequencies allegedly being used illegally by the latter for Internet services in some key parts of the country.
In a statement, Smart Communications Inc. said radio frequencies of idle company Altimax Broadcasting Co. that are leased to Globe for its high-speed wireless Internet services should be recalled by the National Telecommunications Commission (NTC) for violations of existing industry regulations.
Smart said frequencies assigned to Altimax, which lost its government franchise more than five years ago, should instead be auctioned to other companies that can make better use of them.
“Altimax congressional franchise became void by operation of law a long time ago due to continuous non-operation for three years from the date it was granted by Congress,” said Ray Espinosa, head of the regulatory affairs and policy group at Smart’s parent, Philippine Long Distance Telephone Co. (PLDT).
In a complaint filed before the NTC, Smart stressed that Altimax’ lease of its broadcast frequencies to Globe in 2009 for the latter’s use in providing wireless broadband services was patently illegal from the start since such arrangement was not authorized by Congress and the NTC.
Smart’s complaint comes amid similar calls by Globe to the NTC to strip the PLDT group of some of its frequencies if its takeover of rival brand Sun Cellular is completed. Globe said redistributing some of PLDT’s frequencies would level the playing field and keep industry competition alive.
For its part, Smart said Globe’s deal with Altimax was signed after the broadcast firm had already lost its legislative franchise for not operating, and hence wasting frequencies, which are a precious and limited government resource, in the process.
Altimax was originally assigned 48 MegaHertz of nationwide frequencies in the 2596-2644 band and was granted permission in December 2000 to use these frequencies to roll out wireless cable TV services.
Altimax failed to provide these services by the deadline set by NTC and its provisional authority expired in 2002.
The company applied for an extension but its petition was junked by the NTC.
In October 2009, Altimax entered into an agreement with Globe subsidiary Innove, allowing the latter to use Altimax frequencies for the roll-out of broadband wireless access to Innove’s subscribers.
