SC okays Globe, Innove operations in Global City

MANILA, Philippines - The Ayala-controlled Globe Telecom Inc. and its subsidiary, Innove Communications Inc., have been given the green light to install and operate telecom infrastructure within the Bonifacio Global City in Taguig City. This was after the Department of Justice declared the Global City as a "free zone" where all enfranchised public telecommunications entity duly authorized by the National Telecommunications Commission can provide high-speed networks and communications connectivity. Globe and Innove have been unable to operate in certain areas of the Global City covered by the Bonifacio Communications Corporation (BCC), which has been acquired by the Philippine Long Distance Telephone Company, and its sister-company, Smart Communications. However, Justice Secretary Raul Gonzalez, in a four-page legal opinion, declined to rule directly on the query of the NTC on the implementation of a contract concerning the provision of exclusive telecom service and infrastructure within the Service Area, saying the issue is best threshed out in proper courts. Gonzalez said the DOJ’s legal opinion was merely advisory in nature to the government agency concerned. However, pursuant to Section 11, Article XII of the Constitution, Gonzalez approved NTC Memorandum Circular 05-05-2002, promulgated on May 13, 2002, which prohibits any exclusivity within the Global City for high-speed networks and connectivity of all kinds. “We agree with your view that no carrier or service provider can claim any exclusivity in the operation of public utilities within any given service area," he said. Citing the recent Supreme Court decision in the case of Pilipino Telephone Company (Piltel) vs. NTC, Gonzalez noted that the Court struck down claims of monopoly in public telecom services, saying this amount to unlawful confiscation of property. - GMANews.TV