Number two player Globe Telecom has welcomed the divestment of 10 MHz 3G frequency by leading telco Philippine Long Distance Telephone (PLDT). The frequency disposal is part of the conditions imposed by the regulator on PLDT’s acquisition of Digital…
Number two player Globe Telecom has welcomed the divestment of 10 MHz 3G frequency by leading telco Philippine Long Distance Telephone (PLDT). The frequency disposal is part of the conditions imposed by the regulator on PLDT’s acquisition of Digital Telecommunications Philippines (Digitel). Globe previously criticised the deal, saying it was anti-competitive.
PLDT spent PhP69.2bn (US$1.6bn) for a 51.55% stake in number three player Digitel, after finally receiving antitrust approval on 26 October.
The deal took seven months to be completed because of monopoly concerns from the government and rival companies including Globe Telecom, reportedly saying that the newly-formed company would control about two-thirds of the Philippine mobile market.
To ease those concerns, PLDT said it presented a plan to the National Telecommunications Commission (NTC), the country’s regulator, to divest Connectivity Unlimited Resource Enterprises (CURE).
CURE, a subsidiary of Smart Communications which in turn is a unit of PLDT, currently owns 10 MHz of 3G frequency in the 2,100 MHz band.
In a statement sent to TelecomFinance, Froilan Castelo, Globe regulatory head, said: “The approval of the joint application with condition to divest PLDT’s 10 MHz 3G frequency is a progressive step for the NTC in promoting consumer welfare and fair competition. Given the length of time this deal has been discussed by several authorities in the government, the media, and private sector, the decision of the regulatory body upholds its support to the industry, ensuring equal opportunities among players to compete, and allowing consumers to enjoy quality services from their chosen service provider.”
The Philippine authorities assigned four 3G licences in the 2,100 MHz band in 2005. PLDT, which is partly owned by Hong Kong-based First Pacific and Japan’s NTT, acquired one of these licences. When it bought CURE, it gained control of another licence. With the Digitel purchase, it would have gained control over a third licence. The fourth licence is held by Globe Telecom
