Globe takeover on Bayantel needs Congress go signal, says PLDT

The Philippine Long Distance Telephone Company (PLDT) on Thursday insisted that the takeover of Globe Telecom Inc. on Bayan Telecommunications Holdings Inc. (Bayantel) requires Congressional approval.

 

But the Ayala-led telco said this is just a delaying tactic by PLDT from rehabilitating the bankrupt Bayantel.

 

"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," PLDT said in an e-mailed statement.

 

In a resolution dated October 9, the Court of Appeals granted a temporary restraining order in favor of PLDT.

 

The CA ruled that the National Telecommunications Commission (NTC) should have first acted on the objections raised by PLDT, which is a stakeholder in the telecommunications industry. 

 

"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 ten years or since the grant of provisional authority to Bayantel way back in 2000," PLDT said.

 

But in a separate statement released Friday, Globe insisted that this is just PLDT’s bid to delay the corporate rehabilitation of (Bayantel) through their petition of TRO.

 

In May 2013, Globe and the Lopez Group asked the rehabilitation court to restructure Bayantel's $423.3-million debt to prevent default, which was subsequently approved by the Pasay City Regional Trial Court Branch 158 in September.

 

Globe was expecting to get NTC's go signal to rehabilitate Bayantel within the second quarter of 2014.

 

“The radio frequencies were already assigned to Bayan. These frequencies are essential part for the success of Bayan’s rehabilitation as approved by the Pasig Regional Trial Court,” Globe legal counsel Froilan Castelo was quoted as saying.

 

The Globe official also clarified that a Congressional approval is no longer needed since Globe's acquisition of Bayantel only involves the transfer of shares of stocks much like when PLDT purchased Digitel.

 

"Let us reiterate that Bayantel and Globe have a responsibility to serve the expanding needs of Filipino consumers through improved products and services. The success of Bayan’s rehabilitation will give the Filipinos a better alternative service provider," he said.

 

The Ayala-led telco currently holds a 38 percent stake in Bayantel, which Globe bought under a debt-to-equity deal in December 2012. 

 

In October 2013, Globe and Bayantel filed a joint application before the NTC for a change in controlling interest in Bayantel. —Danessa O. Rivera/KG, GMA News