Who will benefit most in the PLDT-Globe purchase of SMC's telco biz?

What's the real deal?

This is the question that Akbayan Partylist Representative Tom Villarin wants answered through a legislative inquiry after PLDT and Globe Telecom filed a temporary restraining order (TRO) against the Philippine Competition Commission (PCC) at the Court of Appeals (CA).

"We want to get to the root cause of this issue and ascertain whether or not PLDT and Globe's joint purchase of San Miguel Corporation (SMC)'s telco business was indeed for the benefit of consumers and the public in general," Villarin explained.

Earlier this year, PLDT and Globe Telecom purchased all of SMC's interests in the telco business for a total of P70 billion after the conglomerate's failed negotiations with Australian-based Telstra Corp. Ltd. to set up their own joint venture of telco services here in the Philippines.

PCC wants to review said deal as integral to its mandate but both PLDT and Globe insist their ₱70-billion purchase of San Miguel's assets was already "deemed approved" when they notified the PCC of the buyout citing the latter's own circulars.

If the TRO is granted by the CA, the PCC will not be able to conduct a review to determine whether or not such a move restricts competition and adversely affects consumer welfare.

"We'd also like to remind these telco giants that blocking the PCC review will not prevent us from getting to the bottom of things," Villarin said.

The PCC was established precisely to ensure the full implementation of the Philippine Competition Act--a landmark legislation authored by Akbayan representatives and passed last year after lingering in Congress for 24 years.

"Consumers are complaining of poor service and exorbitant rates. This is precisely one of the ill effects of their exclusive control over the telco industry," he added.

Akbayan believes that enabling real and healthy competition in the industry will significantly improve telco services and lower the cost of such services for all Filipino consumers.

"They are already giants who deliver poor service. Now we are being made to believe they can perform better by being bigger," Villarin remarked.