NTC reassesses Piltel’s fees

By LENIE LECTURA
TODAY Reporter


The National Telecommunications Commission (NTC) has reassessed Pilipino Telephone Corp.’s (Piltel) unpaid supervision and regulation fees (SRF) from P1.3 billion to about P550 million.

Piltel’s estimated P550 million worth of unpaid SRF was recomputed based on the difference between its paid capital and the par value of its shares from 1992 to 2004.

The reassessment excluded certain subscriptions, such as debt for equity conversion scheme, that stemmed from Piltel’s debt-rehabilitation scheme.

Piltel has protested the commission’s erroneous computation SRF and its imposition of penalties and surcharges.


The company computed SRF based on per value of the capital stock subscribed. It also pointed out that it did not receive payments when it implemented a debt-rehabilitation scheme.

Instead, it only reflected a superficial increase in its paid-up capitalization since there was no actual case infusion.

It added that the debt-rehabilitation scheme was meant to service its alleged indebtedness totaling P47.55 billion. Of which, 50 percent of the said amount was released in exchange for the allotment of Piltel’s convertible preferred shares.

The NTC, on the other hand, adapted a 1999 Supreme Court that stated SRF should be computed on the value of the capital stock subscribed or paid.

As such, NTC collects one half of 1 percent of companies’ paid-up capital or equivalent to P0.50 per P100 of financial resource.

The fee is due every 30th of September and whatever payment beyond the deadline is levied an additional 50 percent of the actual remaining payable.

“Since 1992, Piltel pays SRF based on par value while the NTC based the computation on paid capital, including all payments, premium and all income incurred by the company. After obtaining an opinion from the justice department on what is the proper computation and whether penalties and surcharges should be applied, the NTC has decided that Piltel has to pay the difference between paid capital and par value,” said an NTC official.

The Department of Justice, in its December 8, 2004 opinion, stated that the NTC could validly set aside its original computation of Piltel’s SRF and assess the proper fees by excluding certain subscriptions that resulted in the debt to equity conversion scheme implemented by the company.

And since Piltel has been posting payments in good faith albeit under protest, the DOJ said the NTC should not impose penalties and surcharges.

The NTC had said it would aggressively continue to collect late payments of the SRF.

Those who will not be able to pay their obligations on time will be required to pay an additional 50 percent of their outstanding fees.

If they still fail to settle the balance within 30 days, the penalty shall be increased by 1 percent for every month thereafter of delinquency.

Nonpayment of any of NTC collectible fees shall subject holders of certificates, provisional authorizations and/or licenses and permits to administrative sanctions to include suspension or revocation of their authorizations.

In October this year, the NTC collected last week P783.2 million in SRF from 290 broadcasting firms and 56 radio and phone operators.

PLDT extends NDD unlimited calls plan
Philippine Long Distance Telephone Co. (PLDT) has extended for 11 days more the promotion that offers unlimited flat rate of P10 per minute on all national direct dial calls and calls to Smart Communications Inc., and Piltel’s Talk ’N Text subscribers.