PLDT-Digitel Merger

October 27, 2011 by staff 

PLDT-Digitel Merger, Progressive lawmakers are planning to file a lawsuit to stop the merger of Philippine Long Distance Telephone Co. (PLDT) and Digitel Telecommunications Philippines Inc. (Digitel), who apparently won the approval of the state regulator said Wednesday.

PLDT said on Wednesday it has acquired a majority stake in a rival exchange agreement P69.2 billion share that will allow you to control nearly two thirds of the country’s business cell phone.

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Although not yet seen a copy of the agreement approved by the National Telecommunications Commission (NTC), Bayan Muna Representative Teddy Almost? O said it would file a writ of certiorari with injunction and temporary restraining order (TRO) with the Supreme Court (SC).

“We are looking to file a motion … considering that the SC issued a ruling declaring unconstitutional the ownership of PLDT due to the fact that the majority of the shares of the company is foreign owned,” he said in a text message.

The SC ordered the beginning of the Securities and Exchange Commission (SEC) to investigate a possible violation PLDT by the constitutional limit on foreign ownership of public services.

The SEC, however, has not yet taken action pending the appeal PLDT officials before the High Court.

The same argument was raised by Senator Joker Arroyo, when he voted against a Senate committee report of the defense agreement between PLDT and Digitel.

Rival Globe Telecommunications Inc. has expressed dismay over the future control of PLDT Gokongwei-owned Digitel, the third largest mobile phone service player in the country. A former monopoly, PLDT is the largest Philippine telecommunications company.

Under the agreement, once scheduled June 30 is set to acquire PLDT 51.55 percent of Digitel, Manny Pangilinan as the term the company will result in a 12.8 percent share of JG Summit Holdings, Inc. to the company Digitel matrix.

Announced on March 29 of the upcoming wedding of two players actually result in PLDT cornering up to 70 percent of the cake, leaving Globe with a share of only 30 percent.

To allay fears of monopoly 3G frequencies, the NTC approved the proposal for PLDT to detach from the 10 MHz 3G frequencies in the hands of his unit Connectivity Unlimited Resources Inc. (Cure) with its sister company, Smart Communications Inc .

Priest runs the Mobile Intelligent Network brand as will be forced to sell their rights and interests in healing.

The transaction will take at least nine months to make the steady migration of customers Cure and transfer of assets healing Smart “with the least disruption of service to existing customers Cure”.

In a statement sent to Sun.Star, Globo said the divestment plan was a “step forward for the NTC in promoting consumer welfare and fair competition.”

Taking into account the duration of this agreement has been discussed by several authorities, the head of corporate legal services globe in the group, said the lawyer Froilan Castelo ensure equal conditions will allow “consumers to enjoy quality of services chosen service provider. ”

Globe Telecom also noted the “proactive approach” of the NTC to conduct local interconnection between the Globe and Innove in provincial areas that subscribers benefit by reducing the fixed cost of national calls.

The Ayala-led firm expects the NTC to come up with a similar pro-consumer position on the Internet looking to help expand market opportunities in the provision of Internet services in the country.

For its part, PLDT “will continue to offer its customers the best value in terms of price, quality and variety of products and services and we are committed to continue offering” unlimited “type of services in fulfillment of this promise,” Pangilinan said In a statement to the Philippine Stock Exchange (PSE).

Moreover, Sun’s subscribers can benefit from a wide and varied PLDT infrastructure services, said.

“Together, the PLDT, Digitel Group is well positioned to compete not only with formidable incumbents, but well-funded new entrants as well,” said JG Summit chairman James Go.

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