It seems this outgoing government is running true to form with its wishy-washy policies and decisions, the latest demonstration of which is the Philippine Competition Commission’s decision to go after telco giants PLDT and Globe which, in a very rare show of friendly cooperation, collaborated to buy out San Miguel Corp.’s Vega Telecom for P70 billion (evenly split). According to our stoolies, the PCC wrote both companies to tell them that the transaction notice they provided was “deficient and defective in form and substance”—which means the two telco giants will have to refile their notices because the initial filing reportedly had incomplete information.
Not surprisingly, both Globe and PLDT are standing pat, saying they will not resubmit because what they filed was “compliant” and the transaction had already been deemed “approved.” Our stoolies claim this belated reaction is due to the inability of the PCC to finalize the regulator’s implementing rules prior to the completion of the deal. As things stand, the PCC only released the IR last June 3—after the P70-billion transaction has been “signed, sealed and delivered”—and this will take effect after 15 days.
Hopefully, these kinds of glitches would soon become a thing of the past with only 15 more days to go before the BS Aquino administration bows out (still too long a wait if you ask us). While there are concerns that the SMC-Vega Telecoms acquisition could result in higher Internet rates because the “duopoly” could connive, many prefer to see the glass as half full.
The buyout can result in faster Internet connectivity because the deal included access to the lower frequency 700-mhz band which has better indoor penetration compared to the higher spectrum bands like 1800 or 2500 mhz. This means better signal even when subscribers are inside a building. This may sound funny but it’s true – some subscribers go to great lengths to get a signal, waving their arms like a lunatic or going up the attic or worse, endangering themselves by extending half their bodies out of the window just to send a text message to the fuming wife or girlfriend.
The 700-mhz can also cover a wider area and since it can travel faster (similar to some low frequency radio signals), both Globe and PLDT can provide network services to areas in the provinces without having to wait for a cell tower to be erected. This will benefit people in the rural areas as it will finally introduce the rest of the population to the wonders of Internet technology. Who knows, this might just bring progress faster to far-flung areas.
According to our stoolie, the PCC’s “waffling” (his words) could put the deal at risk and who knows, could set back plans the two telcos already made to widen coverage. PLDT was already on a roll, putting up three 700-mhz powered LTE (long-term evolution) Smart cell sites first in Tanay, followed by Ecoland in Matina, Davao City (but of course! DU30land!) and Manggahan in Pasig City. A release by PLDT-Smart said Smart combined its 700-MHz and 1800-MHz frequency bands using the Carrier Aggregation capability of LTE-A (also known as 4.5G), resulting in unprecedented peak speeds of up to 222 mbps at the Tanay cell site. Smart plans to activate 360 cell sites with 700 mhz this year, initially in Metro Manila, Metro Cebu and Metro Davao, as part of its three-year program to bring faster, affordable, and reliable Internet service to users all over the country.
Globe for its part recently signed a memorandum of understanding with the Metro Railway Transit, an attached agency of the Department of Transportation and Communication to deploy wireless Internet infrastructure in all MRT Line 3 stations along Edsa. “We hope to change the experience of our customers in high foot traffic areas and strategic locations such as public transport systems,” said Globe’s Joel Agustin, vice president for program governance, network technical group, noting that many of the company’s customers seek internet connectivity not only in their offices or at homes but even while they are in transit.
This is probably good news because people can keep themselves occupied by watching YouTube, posting on Twitter or commenting on Facebook while they wait for the (delayed) MRT trains to arrive, or as they wait in line to buy their tickets for a ride that makes commuters very prayerful – praying to the Almighty so that the MRT system will not have glitches, at least for the duration of their commute.
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