Digitel moves to stop PLDT’s expansion plan

DIGITAL Telecommunications Philippines Inc. (Digitel) wants the National Telecommunications Commission to deny the application of the Philippine Long Distance Telephone Co. for expansion in areas not covered by its license.

Digitel also questions the legal capacity of PLDT to expand its services to the entire country, saying it is foreign owned.

In a filing with NTC, Myla M. Matic, Digitel legal counsel, said the entry of the PLDT in areas already served by numerous authorized service providers and entities would result in a ruinous competition prejudicial to minor and budding players in the industry.

The PLDT had requested the regulator that it be issued a certificate of public convenience and necessity, which will allow the company to establish, install, operate and maintain telecommunications services in areas not yet covered by its permit.

“PLDT would naturally be imposing its dominance over these players considering the extent of coverage it desires to serve through the proposed services, a fact which contravenes the very basic purpose of the law to level the playing field for industry players,” Matic said in a statement.

She said the PLDT’s expansion would be a waste of valuable resources as it will duplicate the services already being offered by authorized carriers and entities in the proposed areas.

“It is worthy to take a look at the legal capacity of the PLDT to apply for the proposed services in view of the recent issue that it is a foreign-owned corporation, for more than 60 percent of its outstanding common stocks is owned by foreign interests,” Matic said.

“This is a violation of the 60-40 requirement on foreign ownership of local utilities. This is clearly a violation of the 1987 Constitution and Republic Act 7042 or the Foreign Investments Act of 1991 since with this current set up, the PLDT would allow foreigners to exercise control and management of its affairs and provision of public service which is only granted to Filipino owned corporations,” she added.
--Darwin G. Amojelar - Manila Times