Aquino presses for investigation of PLDT-Digitel merger

MANILA, Philippines—President Benigno Aquino has ordered the Department of Science and Technology and the National Telecommunications Commission to look into any undue advantage a merged Philippine Long Distance Co. and Digitel may have over other players in the telecom industry.

Saying that limited competition would result in a near-monopoly in the telecom sector, the President noted that monopolies were inherently inefficient and asserted that his administration would look after the interests of the public, phone subscribers in particular in this case.

“There are complaints from other players in the telecom sector. There are many technical aspects so I have asked the NTC and DOST to look into the allegations,” Aquino said on his arrival from Thailand Friday night.

“The portion that I remember has to deal with the allocated frequencies being adjacent to each other providing an undue advantage. It seems that costs will be so severely cut by this purported merger that nobody else would be able to compete,” he added.

The President said he had received a document “half an inch thick” that detailed the observations and complaints of the other stakeholders in the telecom industry.

“I am waiting for the NTC and DOST to come up with their findings on whether or not it will limit competition,” Aquino said.

“I was in school when I was first taught that monopolies were inherently inefficient. At the end of the day, what will benefit most Filipinos should be the policy of this administration—should be and will be,” he added.

Originally posted 9:16 pm | Saturday, May 28th, 2011