PLDT urges gov’t to auction Bayantel’s contested frequencies

MANILA, Philippines – Pangilinan-led Philippine Long Distance and Telephone Company (PLDT) has urged the government to auction the unused frequencies of cash-strapped Bayan Telecommunications Inc (Bayantel).

In a disclosure to the Philippine Stock Exchange Thursday, October 30, PLDT head of investors Melissa V. Vergel de Dios noted that Bayantel is barred from transferring its franchise to Globe Telecom Inc without congressional approval.

“It is both PLDT and Smart’s position that the arrangement circumvents pertinent laws and regulations regarding the assignment, allocation, or use of radio frequencies that call for the public auction of the contested radio frequencies which remained idle for over 10 years or since the grant of provisional authority to Bayantel way back in 2000,” Vergel de Dios said in a statement.

Vergel de Dios cited Republic Act 3259 as basis for PLDT’s argument. The law states that any corporation should seek congressional approval prior to the transfer of its franchise or sale of any rights.

“It should be noted that Bayantel’s franchise also specifically prohibits the transfer, sale or assignment of any right or privilege granted it without the approval of Congress,” Vergel de Dios added.

PLDT previously argued that the transaction between Globe and Bayantel contravenes Republic Act 7925 or an act to promote and govern the development of the Philippine telecommunications and delivery of public telecommunications services, as well as the laws and rules on assignment and allocation of radio frequencies.

On October 9, the Court of Appeals issued a 60-day temporary restraining order (TRO)  against the National Telecommunications Commission (NTC) from acting on Globe’s application to take over some of Bayantel’s frequencies.

The appellate court favored PLDT’s petition seeking a TRO on Globe’s acquisition of an additional 42.8% additional 4G frequency access from Bayantel. 

Lopez-led Bayantel had previously said the TRO would further delay proceedings and impact the company’s 350,000 customers in terms of much needed service improvement.

The Pasig City Regional Trial Court had earlier approved the partnering networks’ master restructuring agreement. Under the transaction, Globe would acquire a 56.6% stake in Bayantel through the conversion of 69% Bayantel’s total debt.

The PLDT said the transaction breaches fair competition and said it “has a clear right to be protected on account of the State’s policy to protect all telecommunication companies from unfair competition and to due process.” – Mick Basa / Rappler.com