In a memorandum, PLDT wants the regulator to approve its application to purchase the 51.55 percent stake in Digitel owned by JG Summit holdings Inc. for P69.2 billion.
PLDT said the transaction would not result in a monopoly given that the industry is in a constant state of growth, resulting in robust and healthy competition among current market players and even alternative players such as Google, Skype and Facebook.
Even assuming that a monopoly results from the transaction, PLDT said it is not prohibited under the law for as long as the public interest will be served and it does not constitute a combination in restraint of trade or unfair competition
"Under the Constitution, monopolies in the telecommunications industry are not prohibited per se, because telecommunications entities remain subject to the regulatory authority of this Honorable Commission," PLDT said.
PLDT also insisted that the transaction is not anti-competition because it responds to the country's urgent need for a robust nationwide broadband infrastructure and enhanced yet affordable consumer service.
The country's largest telco said the acquisition will increase capability and better position both PLDT and Digitel to provide higher quality and even more affordable services to fixed line, wireless, and broadband subscribers--from voice to SMS, data, Internet and video services.
In addition, PLDT promised the continuation and enhancement of the unlimited type of services that the public has grown to support by ensuring that the mobile operations of Digitel, Sun Cellular, are kept separate.
PLDT also rejected the request of Globe Telecom Inc. to redistribute excess frequencies of the company to maintain "market balance."
"A higher frequency allocation will not ensure that more cellular subscribers will follow. In order to increase its subscriber base, an entity must be willing to upgrade its facilities to fully utilize its frequency assignment to offer the kind of services that the public demands," PLDT said.
Earlier, Globe said PLDT and Digitel should comply with all anti-monopoly, anti-trust and restraint-of-trade laws and similar rules/legal issuances of the Constitution, Congress and the NTC.
The Ayala-led telco also wants NTC to set regulatory conditions for the approval of the sale and purchase agreement between PLDT and Digitel.
The NTC is expected to issue a decision on the PLDT-Digitel transaction by the middle of next month.
