Bayan Muna Rep. Teddy Casiño, one of the main oppositors to the merger of the Digital Telecommunications Phils., Inc. with the Philippine Long Distance Telephone Co. has reiterated his stand on the issue.
Casiño is also author of a House resolution calling for an investigation into the deal.
Casino said approval of the merger between PLDT and Digitel, creates or tends to create, a monopoly and therefore is unconstitutional. Section 19, Art. XII of the 1987 Constitution states: “The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed.”
PLDT is the biggest and most powerful telecommunications company in the country. Its owners also own and control Meralco, Maynilad, Channel 5, the North Luzon Expressway, and a chain of high-end hospitals, among others.
“Under this deal, nothing will stop PLDT from limiting, discontinuing or even disrupting Sun Cellular’s unlimited text and call plans, even if they say that they will not. And with Sun out of the way, nothing will stop PLDT-owned Smart Communications from conniving with Globe Telecom in raising rates the way they always wanted it to happen. There will be nothing to stop PLDT from using its enormous market power to strangle the competition or bend them to its will, Casino said.”
In addition, Casino said: “The PLDT-Digitel merger violates the franchises given by Congress to Digitel Telecommunications Phils. Inc. and Digitel Mobile Phils, Inc. – franchises that were precisely designed to prevent the emergence of monopolies.
“Congressional approval is required because the franchise is a mere privilege granted by Congress, and as such Congress has the duty to ensure that public interest is adequately protected by ensuring that the sale is legal and aboveboard; two, that the franchise does not fall in the hands of fly-by-night operators; and three, that the sale or transfer does not create the very monster that we want slain – a monopoly with overwhelming market power.
“Just to stress the point, prior congressional approval is explicitly contained in the franchise not only of Digitel Mobile but of all the big players – Digitel Telecommunications, PLDT, Smart Communications, Bayantel and Globe. Why is this so?
