PLDT seeks court order to keep monopoly in Fort Bonifacio

by: P.L.G. Montecillo

Source: Business World

 

 

THE PHILIPPINE Long Distance Telephone Co. (PLDT) is seeking a 20-day temporary restraining order to stop regulators from removing the exclusive rights of a PLDT unit to provide telecommunications services at the Bonifacio Global City.

It sought court action to void Memorandum Circular 05-05-02, which in 2002 declared the Bonifacio Global City as a "free zone" where all telecommunications firms can operate.

PLDT got the exclusive rights to set up telecommunications facilities and offer services in the emerging business district after acquiring in 2002 a 75% stake in Bonifacio Communications Corp. from several government entities, led by the Fort Bonifacio Development Corp. (FBDC).

In a complaint before the National Telecomunications Commission (NTC), PLDT argued that Bonifacio Communications had been given the "exclusive right to install, construct, own and maintain all the necessary communication infrastructure" by the FBDC and the Bases Conversion Development Authority "in [their] capacity as landowners."

In May 2002, the NTC issued a memorandum circular declaring information technology or IT hubs around Metro Manila as free zones for telecom firms.

PLDT claimed the circular discriminates against it, since other telecom firms have similar exclusive contracts over establishments in the area.

"To date, PLDT has spent a substantial amount of money in preparation for and in providing telecommunications facilities within the area," it said.

Last year, Innove Communications, Inc. a unit Globe Telecom, Inc., used the NTC memorandum circular as basis for putting up its own telecommunications infrastructure in the area, which PLDT opposed.

Innove has sought a cease-and-desist order versus PLDT.

 

Mediaquest Holdings, Inc., a unit of the PLDT Beneficial Trust Fund, has a minority stake in BusinessWorld. — P.L.G. Montecillo