MANILA, Philippines—The group of businessman Manuel V. Pangilinan has called on the Department of Justice (DoJ) to look into monopolistic arrangements between companies controlled by conglomerate Ayala Corp.
Ray Espinosa, the Philippine Long Distance Telephone Company’s regulatory affairs policy head, said the Ayala group should look at its own operations before pointing fingers at other companies.
“It is Globe that must explain to government and the public why it should not be held liable for being an active party in an arrangement—exclusivity in Ayala malls—which clearly constitutes combination in restraint of trade,” Espinosa said.
This came as the Ayala-led Globe Telecom again warned the public that the Philippine Long Distance Telephone Co.’s (PLDT) takeover of Digitel Telecommunications Philippines Inc., would kill competition in the telecommunications sector that would lead to higher rates for consumers.
On Wednesday, Globe said “the burden of proof is PLDT’s to bear. They must prove to the public beyond doubt that their monopolistic hold on radio frequencies will not prejudice industry and consumers now, and especially in the long term.”
Globe legal counsel Rodolfo Salalima said PLDT in several instances over the past decade has opposed policies that have benefited consumers.
In particular, PLDT at first refused to interconnect with other networks to lower costs.
Salalima likewise noted Pangilinan’s recent statement saying that bigger telecom players could better serve consumers as seen in other countries.
Once PLDT’s takeover of Digitel is completed, the group will corner 70 percent of the lucrative telecom market.
“Everyone including the government should be deeply concerned and exercise vigilance about the possible repercussions of the PLDT-Digitel consolidation,” Salalima said.
But PLDT has hit back, saying Globe’s opposition to the Digitel takeover was a desperate attempt to ensure that Sun’s low pricing business model would not reach more customers.
“We have indubitably established that the PLDT acquisition of Digitel is pro-consumer and promotes the public good. PLDT is committed to sustain and expand the popular Sun ‘unli’ services and to make it nationwide, to serve millions and millions more,” Espinosa said.
Espinosa said the Ayala group should look at its own operations before pointing fingers.
He said Justice Secretary Leila de Lima, who was recently appointed as the country’s competition authority, should look motu propio or “on its own” into the arrangements between Ayala-owned retail establishments and Globe.
“This arrangement goes as far as preventing PLDT and other cellular operators from installing “pico” cells in the Ayala malls which are needed to maintain the required grade of service within these malls,” Espinosa said. “This evinces a clear intention to degrade the services of other cellular operators,” he said.
“It is time for Globe to account for its illegal arrangements,” Espinosa said.