Smart seeks recall of Globe’s leased frequencies

SMART COMMUNICATIONS, Inc. has moved to have regulators take away several frequencies being used by rival Globe Telecom, Inc., yesterday filing a formal complaint against what it deemed to be an illegal use of radio waves. The petition sent to the National Telecommunications Commission (NTC) formalizes Smart Communications’ earlier accusations that a Globe Telecom deal to lease Altimax Broadcasting Co.’s frequenices was illegal. This comes after Globe Telecom had urged regulators to keep Smart Communications’ parent from taking over Digital Telecommunications Philippines, Inc. and its frequencies. “We are now asking the commission to immediately order Altimax to cease and desist from leasing out the questioned frequencies, and Innove from the use thereof…” Smart Communications said in a statemement, adding that NTC should then bid out the confiscated radio waves. Innove Communications, Inc. is a unit of Globe Telecom, said to have been leasing frequencies from Altimax since 2009. A copy of the filing was not immediately made available. “Altimax’ lease of its broadcast frequencies to Globe in 2009 for the latter’s use in providing wireless broadband services was patently illegal from the start since such arrangement was not authorized by Congress and the NTC,” Smart Communications added. Altimax allegedy had no hold over the frequenices in the first place since its franchise was voided “a long time ago” after failing to operate three years after receving licenses. Altimax was given until June 2005 to come onstream after receving its franchise in 2000, Smart Communications said. But then the NTC in 2009 decided to grant an extension until June 2012 even as it had decided on the contrary earlier, Smart Communications said. “[The NTC] no longer had any jurisdiction… to grant any extension… since Altimax no longer had a legislative franchise to begin with. Altimax lost its legislative franchise by the mere fact of failing to comply with the conditions for its existence,” Smart Communications said. Despite all these, Altimax entered into a memorandum of agreement with Innove Communications in October 2009 for the lease of Altimax’ frequencies for the latter’s broadband wireless access services. “We ask for the frequencies previously granted to Altimax to be recalled and revoked and to make these frequencies available to qualified interested telecommunications service providers,” Smart Communications said. Froilan M. Castelo, Globe Telecom’s head of legal services, declined to comment in the meantime. Globe Telecom had said last month its transaction with Altimax back in 2009 “was fully disclosed and clearly aboveboard.” Shares of Philippine Long Distance Telephone Co. (PLDT), the parent firm behind Smart Communications, fell 0.25% to P2,414 apiece yesterday. Shares of Globe Telecom fell 1.67% to P885 apiece.