NextGen Day

The newest mobile telecoms company in the nation, DITO Telecommunity, has complained to the Philippine Competition Commission (PCC) about Globe Telecom and Smart Communications for allegedly abusing their market dominance through interconnection issues.

The National Telecommunications Commission (NTC) legally mandates that telecommunications companies (telcos) interconnect with all other telcos in the market, enabling calls and text messages to and from other service providers, according to DITO Chief Administrative Officer Adel Tamano.

“At this point, you must follow that. That is certainly not being followed by Globe and Smart, according to Tamano.

He criticized Globe and Smart for “abusing” their market dominance to “hinder our progress” and calculated that DITO currently holds a 5 percent market share in the mobile telecommunications industry.

If interconnections were acceptable, “[DITO’s market share] would be much, much greater,” he asserted.

Only 20 to 30% of calls made by DITO subscribers to Globe and Smart are currently successful, according to DITO Chief Technology Officer Rodolfo Santiago, with the remaining calls being disconnected.

In response, PLDT, the parent company of Smart, stated that although they had not yet received the complaint, they “have always supported and ensured fair competition in the telco business.”

Globe has not yet responded to the grievance.

The PCC, on the other hand, acknowledged receiving two complaints from DITO.

The Competition Enforcement Office (CEO) of the PCC stated in a statement that it is evaluating the validity of the allegations made by DITO.

“The Commission has 10 days to decide whether to give the complaint due consideration. If given the proper time, our CEO will investigate the allegations and, if it determines that there is sufficient evidence to support them, file a Statement of Objections with the Commission en banc against the allegedly negligent parties, according to PCC officer-in-charge Johannes Bernabe.

It further stated that it would communicate with the NTC for advice on any regulatory issues pertaining to the situation.

Since it enables call, SMS, and other information sharing between networks, interconnection is a crucial part of the telecommunications sector, Bernabe continued.

The PCC is tasked with promoting fair market competition as a quasi-judicial authority by monitoring the market for anti-competitive agreements, abuses of dominant position, and anticompetitive mergers and acquisitions.

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