Small player blocks Piltel’s expansion application at NTC

MANILA, Philippines - Multimedia telephony, Inc. is blocking plans of Pilipino Telephone Co. (Piltel) to expand its data services nationwide, which it said could hurt smaller players. In an opposition filed at the National Telecommunications Commission (NTC), Multimedia Telephony said granting Piltel’s application to install, operate, establish and maintain a nationwide data communications network in unserved and underserved areas would be detrimental to smaller companies offering the same services in the same locations. "To grant an authorization to another carrier to provide basically the same service will unduly strain the financial viability of the carriers now presently providing similar services," Multimedia Telephony said. It added that there is no immediate public need that the application seeks to address since the limited market is fully covered by existing operators. Multimedia Telephony, which used to be owned by former House Speaker Jose de Venecia, Jr., provides business solutions and Internet service. It obtained its licenses in public mobile telephone and cellular mobile telephone systems from the NTC in October 2005. Multimedia Telephony said Piltel’s expansion plan would unnecessarily duplicate existing services. Piltel is 92% owned by Smart Communications, a subsidiary of Philippine Long Distance Telephone Co. (PLDT). PLDT’s beneficial trust fund owns Mediaquest Holdings, Inc., which in turn holds a minority stake in BusinessWorld. Ramon Isberto, spokesman of the PLDT group, said Piltel’s application is in line with its franchise as a telecommunications service provider. He said they would pursue Piltel’s expansion plan before regulators. - A.B.L. Lorenzo, BusinessWorld