Globe, PLDT trade barbs over Bayan deal

MANILA, Philippines–The Ayala group’s Globe Telecom Inc. disputed the stand of rival Philippine Long Distance Telephone Co. that the frequencies of Bayan Telecommunications—which Globe is in the process of acquiring—should be auctioned off as it called for the case to be dismissed.

A statement on Tuesday showed that both Globe and Bayan, in a joint rejoinder to the 17th Division of the Court of Appeals last Oct. 30, asked the tribunal to lift the injunction it issued last Oct. 9 against the National Telecommunications Commission and to deny the granting of a writ of preliminary injunction.

The announcement comes as PLDT said core net income in the nine months through September slipped 1 percent to P28.6 billion while reported net income, which includes non-recurring items, went down by 3 percent to P28 billion.

Bayan-Globe showed the CA that PLDT’s overstated right to be protected has no basis since Bayan’s rehabilitation will simply put a far third-ranked player back on its feet, and not creating “unfair competition” at all.

Bayan’s co-use of its radio frequencies with Globe “are not at all inimical to petitioner PLDT nor to the industry or the subscribing public as they will not only mean the success of Bayan’s rehabilitation but a benefit for the rapidly expanding consumer market by empowering them with more choices and faster and better products and services.”

“Furthermore, there is no issue on the need for a Congressional approval with the alleged franchise transfer since what is being transferred are only Bayan’s shares of stock and not its franchise.”

Both Globe and PLDT continued to trade barbs last week, after the latter obtained a temporary restraining order from the Court of Appeals, preventing the NTC from acting on a joint Globe-Bayantel application aimed at allowing Globe to convert Bayan debts into equity.–Miguel R. Camus