PLDT bucks Globe’s demand for frequencies

Ayala-led Globe Telecom’s demand to have some of Philippine Long Distance Telephone Co.’s (PLDT) frequencies once the latter’s takeover of the Sun Cellular brand is completed is “nothing but madness.”

PLDT regulatory affairs head Ray C. Espinosa on Tuesday said the company had just enough frequencies for its operations, and that giving any of them away would reduce the quality of service for its millions of subscribers.

“What Globe is saying is that the NTC [National Telecommunications Commission] should give some of PLDT’s frequencies to Globe. They are asking for state-sponsored advantage,” Espinosa told reporters.

“Isn’t that madness?” he added, speaking on the sidelines of a Senate inquiry on the P74.1-billion PLDT acquisition of Sun Cellular operator Digitel Telecommunications Philippines Inc.

Espinosa stressed that PLDT’s frequencies were appropriate for the number of its subscribers.

Since PLDT has more users, naturally, he said, the company will need more frequencies to deliver services to those subscribers.

Data from the NTC showed that once the PLDT-Digitel deal is completed, the group will have 51 percent of frequencies used in the country today.

That’s more than double the frequencies held by Globe, at about 23 percent of the total.

Espinosa said this was an appropriate ratio since PLDT and Digitel have a combined market share of 70 percent versus Globe’s 30 percent.

In a petition, Globe earlier asked the NTC to redistribute PLDT’s frequencies to smaller players to preserve competition in the market—a call that PLDT opposed.

“If PLDT lets go of its frequencies, our service quality will deteriorate and our subscribers will move to Globe,” Espinosa said. “That’s not a fair fight. Globe is not looking for what’s fair to users,” he said.

At the inquiry, consumer group TXTPower urged the Senate to exercise its oversight powers to ensure that interests of consumers are not affected by the PLDT-Digitel deal.

“We also implore the Senate, to use its powers and prerogatives, to seek answers to consumers’ questions,” TXTPower president Antonio Cruz said in a statement.

But Senate President Juan Ponce Enrile reiterated that the PLDT-Digitel merger violated no law and should be approved.

He said even though PLDT will end up with a substantial market share, the NTC will still be there to protect the welfare of consumers by ensuring that there is no predatory pricing by industry players meant to kill competitors.

Espinosa, meanwhile, said that with the backing of the extensive PLDT nationwide network, the lower prices that Sun has been known for would be enjoyed by even more subscribers.

“We will use the Sun brand to strengthen unlimited offers to reach the whole country,” he said.