CA orders PCC to comment on PLDT, Globe pleas vs buyout review

The Court of Appeals has asked the Philippine Competition Commission (PCC) to comment on two separate petitions to stop the competition watchdog from investigating the P69.1-billion buyout of San Miguel Corp's telco assets.

In one of its resolutions, the CA—through its Sixth Division—gave the PCC 10 days within receipt of the notice to comment on a petition by Globe Telecom Inc to stop the commission's comprehensive review of the buyout.

The Globe would then be given five days to file a reply to the comment that PCC would be filing.

In the second resolution, the CA's Twelfth Division also gave PCC 10 days to comment on a separate plea from the Philippine Long Distance Telephone (PLDT) Company against the review.

The PCC was also directed to show cause why Smart's petition with prayer for a temporary restraining order and/or preliminary injunction should not be granted.

PLDT will also be given five days to reply to PCC's comment.

"Thereafter, unless the court will conduct and/or require the submission of memorandum, the above-entitle case is submitted for decision," read the resolution.

"The parties are directed to inform the court, within 10 days from notice, of any other pending or subsequently filed action related to the instant petition...," added the CA division in its ruling penned by Associate Justice Ramon Bato.

The P69.1-billion deal, announced in May, covers P52.08 billion for a 100-percent equity interest in Vega Telecom and the assumption of around P17.02 billion in liabilities.

Vega Telecom owns controlling interests in Bell Telecommunication Philippines Inc., Eastern Telecommunications Philippines Inc., Cobaltpoint Telecommunication Inc. (formerly Extelcom), Tori Spectrum Telecommunication Inc. (formerly Wi-Tribe), and Hi-Frequency Telecommunication Inc.

PLDT unit Smart Communications Inc. and Globe last month opened the first cell sites utilizing the 700 megahertz (MHz) spectrum as part of the deal.

Both companies were authorized by the National Telecommunications Commission (NTC) to co-use certain radio frequencies within the 700 MHz spectrum on the premise of an exponentially better internet service in the country.

Globe and PLDT have emphasized that the transaction was above board and did not violate any provisions of the country’s Philippine Competition Act.

In June, the telcos submitted additional documents to satisfy deficiencies cited by the PCC. — BM, GMA News