Globe insists on legality of SMC telco assets purchase

May 31, 2017 - 8:58 PM

MANILA – Globe Telecom on Wednesday insisted on the legality of its move to make a final payment for the purchase of San Miguel Corporation’s (SMC) telco assets despite a pending petition filed by the Philippine Competition Commission (PCC) before the courts.

Globe and PLDT Inc. have paid P13 billion as final installment for their joint acquisition of the P69.1-billion, 700 megahertz (700 MHz) frequency spectrum held by SMC’s Vega Telecom last year.

“Without any legal impediment or court order, Globe has proceeded and completed the transaction. These include the network roll-out of the 700MHz nationwide, co-use of spectrum between Globe and San Miguel, and the full payment of the commercial agreement,” Globe General Counsel Atty. Froilan Castelo said in a statement.

Castelo added that it is in compliance with all regulatory requirements in completing the contractual obligation in the acquisition of the telco assets of San Miguel; and that Globe did not violate any rule or prevailing law at the time the transaction was signed.

He disputed PCC’s claim that the telco’s completion of its payment to SMC violates the gag order issued by the Court of Appeals and has preempted the decision of courts.

“This is contemptous and the PCC should be held liable for this,” Castelo said.

In a statement, the PCC said Globe and PLDT should not have proceeded with the final payment on the telco deal with SMC due to pending cases filed before the Supreme Court and Court of Appeals.

The PCC filed a petition last month before the SC to lift the CA’s injunction which blocked its review of the Globe and PLDT telco deal with SMC. This was after the CA issued the writ of preliminary injunction last year and denied PCC’s motion for reconsideration early this year.

PLDT and Globe vowed last year to deliver improved Internet service after the National Telecommunications Commission (NTC) told the two telco giants to boost Internet speeds within a year, or it will revoke its approval for them to take over the spectrum owned by SMC.