Epal talaga PLDT lol.
BayanTel purchase bypassed Congress
Philippine Long Distance Telephone Co. wants the National Telecommunications Commission to reverse its earlier decision on the takeover of Bayan Telecommunications Inc. by rival Globe Telecom Inc.
The country’s largest telecommunications company said in an appeal the regulator’s “justification for the approval of joint application is not only contrary, but is also without any basis in law.”
“With all due respect, [NTC] erred in exempting Globe and BayanTel from the required prior Congressional approval considering that the debt-to-equity transaction between Globe and BayanTel is not contemplated under the equity of treatment clause,” PLDT said.
PLDT added the regulator also erred in ruling that the joint application of BayanTel and Globe would not result in a gross disproportionate assignment of radio frequency in favor of Globe.
“Despite the admitted fact that BayanTel had not been utilizing its frequencies and rolling out its CMTS [cellular mobile telephone services] operations as required under its provisional authority, [NTC] sanctioned an outright transfer of the radio frequencies disguised as a gradual takeover of BayanTel by Globe,” PLDT said.
“PLDT, therefore, implores.... to reverse its ruling in the assailed decision or, in the alternative, require the divestment of BayanTel and Globe’s excess frequencies,” it added.
PLDT added Globe already had a disproportionate amount of radio frequencies against its consumer base.
PLDT earlier said with the acquisition of BayanTel, Globe would have control over 22.5 megahertz (MHz) of the 1800 MHz 2G bandwidth.
The NTC last month said the approval of joint application of BayanTel and Globe would enhance competition in the cellular mobile and broadband markets, rejecting the claim of rival Smart Communications Inc. that it would result in grossly disproportionate assignment of radio frequency.
Globe acquired 98.26 percent of BayanTel’s loans and 100 percent of Radio Communications of the Philippines Inc.’s liabilities. RCPI, a unit of BayanTel, is owned by the Lopez Group.
The acquisition cost of $130 million was lower than the $400-million face value of BayanTel.
After the NTC approval, Globe agreed to buy the remaining stake of the Lopez family in BayanTel for P1.83 billion.
The transaction involves up to 70,763,707 BayanTel shares and increases Globe’s equity interest in BayanTel from 56.87 percent to 98.57 percent of the outstanding capital stock.