Globe use of Altimax spectrum questioned

The battle for valuable telecommunications frequencies is surfacing in other parts of the industry— this time over the alleged “illegal” use by Globe Telecom of the spectrum assigned to Altimax Broadcasting Co. Inc. for its broadband services.

The issue was raised by Velarde Inc., former owner and now minority shareholder of Altimax, in a letter to the National Telecommunications Commission.

The move was aimed at protecting Velarde Inc. from potential legal suits ahead of Altimax’s application for an extension of its provisional authority, company president Mel Velarde told the Inquirer in an interview.

“It’s a defensive move. We decided to write the NTC that we are not part of any illegality,” said Velarde, who also heads listed NOW Corp., a company that is rolling out a rival broadband service in Metro Manila.

He said Velarde Inc. would be exposed to a legal suit since it still owned about 14 percent of Altimax.

“We don’t want to be incriminated. If it (Globe retirement fund) is willing to sell back the 86 percent, I will pay them immediately,” he added.

Globe and NTC officials did not respond to a request for comment.

The issue was raised earlier by Globe rival Philippine Long Distance Telephone Co. in the midst of the 2011 hearings over PLDT’s acquisition of Digital Telecommunications Philippines Inc., operator of the Sun Cellular brand.

It dates back to 2009, when Globe’s employee retirement fund via Bethlehem Holdings Inc. acquired control of Altimax, which has a franchise to build and operate radio and television broadcast stations.

Altimax was later given provisional authority to build, operate and maintain a nationwide direct broadcast satellite service.

Altimax, under Bethlehem, then leased the 2597 and 2627 megahertz frequencies to Globe subsidiary Innove Communications for its broadband WiMax services.

Velarde said Altimax was barred from doing this under its franchise.

“As a stockholder of Altimax, Velarde Inc. wishes to express its grave concern over the corporation’s unauthorized and unlawful exercise of the rights and privileges granted to it,” Velarde said in a letter to the NTC.