Globe Telecom trumps PLDT in court

The Pasig Regional Trial Court (RTC) has thrown out a petition filed by a unit of Philippine Long Distance Telephone Co. that sought to block the entry of rival Globe Telecom in the exclusive Fort Bonifacio business district.

In a resolution, the court said the exclusivity contract of PLDT’s Bonifacio Communications Commission (BCC) covering certain areas in Fort Bonifacio was a purely technical matter and should be left to the National Telecommunications Commission (NTC) to resolve.

“The NTC has jurisdiction to make sure that the provider of telecommunications services do so in conformity with the standards and specifications set by international radio and telecommunications organizations,” Judge Esperanza Cortez ruled.

The case stems from the PLDT unit’s effort to block the entry of other telcos in Fort Bonifacio—home to several business process outsourcing firms highly dependent on strong telecommunications services.

BCC has an exclusive agreement with the government-run Fort Bonifacio Development Corp.

After failing to set up facilities at the Fort, Globe filed a complaint with the NTC, which subsequently released Memorandum Circular (MC) 05-05-2002.

Under the circular, the NTC declared Fort Bonifacio to be a free zone where any duly franchised public telecommunications entity (PTE) may be allowed to provide networks and connectivity.

After the issuance of the new rules, PLDT sued the NTC and Globe, arguing that “exclusivity is an industry practice and is not an abnormality.”

“The issue of whether or not the contract of exclusivity is constitutional or legal is indeed a factual issue as it is purely legal,” the Pasig court said.

“However, in order to determine if the contract is against the law, there is a need to look into the factual implementation, i.e. whether or not the contract does indeed hinder the implementation of the license of other telecommunications entities,” it added.

The NTC also has the power to determine whether the exclusivity agreement results in a “monopoly of telecommunications services” in the area.