The two largest telecommunications companies on Tuesday filed separate cases before the Court of Appeals against the government’s newly created anti-trust body amid a review of their joint acquisition of San Miguel Corp.’s telecom assets.
PLDT Inc. regulatory affairs head Ray Espinosa said the company sought a temporary restraining order against the Philippine Competition Commission, after declaring the P70-billion acquisition of San Miguel’s telco assets by Globe Telecom Inc. and PLDT was not “deemed approved” and would need a review.
“We were constrained to file the petition to uphold the deemed approved status of the transaction under the terms of the PCC’s transitory circulars,” Espinosa said.
PLDT claimed that the circulars had considered the transaction approved and could no longer be challenged before the implementing rules and regulations of the Philippine Competition Act came into full force.
The deal between PLDT, Globe and San Miguel was sealed on May 30, while the PCC rules were published on June 3 and would take effect after 15 days.
“The transaction has been deemed approved by operation of law. The transitory circulars issued by the PCC have the force and effect of law. We complied fully with the terms of the circulars. The legal effects and consequences of such compliance cannot be reversed or undone,” Espinosa added.
He said that to reverse or undo the transaction would result in irreparable and incalculable injury to the public service.
Espinosa said “the use of the new frequencies is also in compliance with the order and directive of the National Telecommunications Commission, when it approved the specific frequency co-use arrangement between Smart and BellTel Telecommunications Philippines Inc., that such co-use arrangement be implemented immediately.”
“[We] are asking the Court of Appeals to uphold and enforce our rights and also to prevent the PCC from depriving the public of the benefits of improved telecommunications services arising from the efficient and effective use of the new frequencies which for the longest time have remained idle and unutilized,” he said.
Globe corporate communications hyead Yolanda Crisanto said her company already filed a case against PCC to question the review of PCC on the transaction.
PCC said in a separate statement it received a copy of PLDT’s petition and would take action immediately.
“We are disappointed that they have decided to resort to a lawsuit against the PCC to prevent a comprehensive review of this deal,” the anti-trust body said.
