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DIGITAL
Telecommunications Philippines Inc. (Digitel) is
appealing to the National Telecommunications Commission
(NTC) to allow it to formally oppose the application of
a small provincial phone firm interested to operate
fixed and mobile data networks.
The
publicly listed phone firm of the Gokongwei group had
been declared in default by the NTC for its failure to
attend the hearing and file its written opposition
against Cruz Telephone Co. Inc.’s (Cruztelco)
application.
The
hearing was slated last July 30. But Digitel said it
received the NTC notice of the hearing on the same day.
Digitel said it could not have known that a hearing was
scheduled on July 30 since it was able to receive a copy
of the notice only on the actual date of the hearing.
For its
failure to file its written opposition and attend the
hearing, Digitel was declared in default.
“Digitel
should not be declared in default because its failure to
attend the said hearing, file its written opposition
and/or present evidence was not due to its own fault or
negligence. Digitel respectfully implores the kind
consideration of the NTC to life the order of default
against it, and admit its written opposition,” said
Digitel in a filing with the NTC.
Digitel
said that Cruztelco’s application has not effectively
shown that the proposed service shall address the public
demand for additional telecommunications in the areas
applied for. In fact, it pointed out, there is no doubt
that the market today for provision of data services is
equally and efficiently attended by existing carriers.
“The
competition among these carriers has already brought
about cost and quality-effective strategies and measures
that have lowered pricing schemes and produced better
services that directly benefited and is still benefiting
the consuming public. Provision of the same service by
another entity would therefore be a surplus and may
elicit unhealthy business atmosphere,” said Digitel.
Cruztelco did not specify in its application the areas
it wants to operate fixed and mobile data network.
Digitel, on the other hand, was granted an authority to
provide local exchange services (LEC) in Regions I to V,
National Capital Region and the Visayas and Mindanao
areas; data services nationwide; maintain international
gateway facilities; international cable landing station;
and a digital transmission network.
“It
becomes vague now as to whether Cruztelco can actually
provide the proposed services and that such services
would complement and supplement the LEC service existing
thereat. Hence, Cruztelco must establish that it indeed
has the prior authority to provide telecommunication
services and that it actually operates,” said Digitel.
According to Digitel, Cruztelco failed to support its
contention that pursuant to its legislative franchise,
it has been granted and is now ope-rating a telephone
service in various cities and municipalities in the
country. Cruztelco’s application did not specify the
authority given and the particular areas where it has
been granted the authority to operate, as well as where
it actually and presently operates its telephone
services, added Digitel.
Earlier,
Smart Communications Inc. also opposed Cruztelco’s
P500-millon foray into data services, including
broadband.
Smart
said Cruztelco’s application is defective and legally
infirm. The application, said Smart was not verified.
Further, Smart and other affected parties have not been
properly and fully appraised of Cruztelco’s application
because it does not contain the proposed rates and the
complete list of the areas proposed to be served by
Cruztelco.
Smart’s
parent firm Philippine Long Distance Telephone Co. (PLDT),
meanwhile, asked the NTC to order Cruztelco to define
the type of data service it is applying for.
Typically, data services refer to a telecommunications
service that transmits high-speed data rather than
voice. Internet access is the most common data service,
which may be provided by the phone and cable firms as
well as cellular operators. Text messaging, meanwhile,
is a cellular data service.
“In this
case, the application does not state the specific data
service being applied to distinguish the same from other
data services. Hence the service as described in the
application is quite vague as the specifics may refer to
or include any service using data either as a mode of
transmission or as the product itself which could
include all types of services other than voice,” said
PLDT.
Cruztelco vice president for operations and marketing
Enrico de los Reyes said the company intends to offer
data services, particularly wireless broadband,
nationwide.
“We are
pouring in P400 million to P500 million as investment
for our data business. The roll out will be in two to
three months upon award of our permit from the NTC,”
said de los Reyes. |
