Globe Telecom Files Case Before Court of Appeals

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Globe Telecom filed a case before the Court of Appeals to preserve the multi-billion peso deal which will allow the telecommunications company to immediately use the underutilized frequencies owned by SMC for public benefit.

In its petition for certiorari, prohibition and mandamus with prayer for a temporary restraining order, Globe emphasized that when the acquisition was made in late May of this year, the parties have strictly followed the provisions of Sections 4 and 5 of the PCC Memorandum Circular No. 16-002. Under the MC, the deal is deemed approved if they are “consummated after the effectivity of the memorandum circular but before the effectivity of the implementing rules and regulations.” The PCC however chose to disregard this and took the position it is not bound by its own rules.

Under the own rules of the PCC, the transaction is already “deemed approved”, and the PCC cannot by whim or caprice state that it wants a review without any legal basis. The PCC cannot withhold and block the transaction out of a process not found in their own rules, and not disclosed to the public.

Despite this Petition, Globe continues to roll out using the co-used spectrum with the joint buyout of San Miguel’s telco assets, as the company is committed in improving the internet experience of its customers. Specifically, the company is activating the 700 MHz frequency spectrum in about 500 based stations in various parts of the country. Globe is also making use of its additional allocation in the 2600 MHz band to provide additional layer for its LTE network for faster data connectivity.

Globe further insists that there is nothing anti-competitive with the transaction to warrant its disapproval. In fact, the immediate use of the underutilized frequencies have spurred a series of competitive data offers that drastically brought down prices of mobile data for prepaid customers.    

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