FVR warns of PLDT-Digitel deal impact on public

Former President Fidel V. Ramos warns that the acquisition of Digital Telecommunications Philippines Inc. (Digitel) by telecommunications giant Philippine Long Distance Telephone Co. (PLDT) may result in a disservice to the public, noting that the deal is meant to primarily stifle competition in the telecommunications industry and not to improve service.

In a forum organized by the Ramos Peace and Development Foundation (Rpdev), which is chaired by the former president, and the TA Trade Advisory Group, headed by former Tariff Commissioner and past president of Philippine International Trading Corp. Anthony Abad, Ramos cited the need to level the playing field in business to attract foreign capital, managerial expertise and technology, as well as accelerate development.

“The matter of leveling the playing field as well as capability that will all add up to prosperity is like arithmetic. But one plus one should be equal to not two, but three or five or 11 even, because that is exponential. But what happened here is one plus one equals zero. It is a gobbling-up process to eliminate the opposition. That should not be. What we all want is a better future and a higher level of respect and even admiration for the Philippines,” said Ramos.

It was during Ramos’ presidency when Republic Act 7925, or the New Telecoms Policy Act, was passed in 1995. Under RA 7925, the telecom industry in the country is to be de-monopolized and liberalized by allowing more players to enter and compete in the telecom service under the spirit of deregulation or less stringent regulations.

“The de-monopolization of PLDT has not only made our country the world’s ‘texting’ capital with a daily volume of short-electronic messages larger than all of the entire European Union and enabling the 10 million Filipinos overseas and their families at home to be in constant touch. It has also made the new call centers and business process outsourcing industries the new drivers of our economy today,” Ramos said.

In March, PLDT announced it would acquire a 51.55-percent stake in Digitel for P69.2 billion from its parent firm, JG Summit Holdings. The closing of the deal was set for Aug. 26, 2011, pending approval of the National Telecommunications Commission (NTC). It had been moved twice from the original June 30 closing date, due to opposition from several stakeholders.