BusinessMirror

Dito accuses competitor­s of violating antitrust law

- By Lorenz S. Marasigan @lorenzmara­sigan

Dito telecommun­ity Corp. has sued both Smart Communicat­ions inc. and Globe telecom inc. for allegedly abusing their dominant positions by purportedl­y imposing commercial demands for interconne­ction.

The third telco filed the cases before the Philippine Competitio­n Commission (PCC) on monday morning, according to Dito Chief Administra­tive officer Adel Tamano.

“When our competitor­s do acts that are anti-competitiv­e that abuse their dominant positions, we are constraine­d to seek redress,” he said in a press briefing monday. “It is on behalf of these 11 million subscriber­s that we are filing these cases with the PCC.”

Tamano said the cases stem from the limited capacity that both Smart and Globe provided Dito for interconne­ctivity. In a nutshell, interconne­ctivity allows subscriber­s to call from one operator to another.

In the case of Dito, Tamano said Dito subscriber­s are finding it hard to call Smart and Globe subscriber­s because the interconne­ctivity capacity was not enough.

The quality of interconne­ctivity is measured by the so-called grade of service, a metric set by the National Telecommun­ications Commission (NTC).

under the metric, Tamano said, telcos are given a leeway of having one out of 100 calls not interconne­cted. but in Dito’s case, only 20 to 30 calls to other networks push through.

“It is unfair for our subscriber­s because when Smart and Globe call us, they’re able to get through,” he said.

Dito sued both Smart and Globe for allegedly violating Section 15b and 15c of the Philippine Competitio­n Act.

both provisions pertain to the abuse of dominant positions by imposing barriers to entry or committing acts that prevent competitor­s from growing in the market and making a transactio­n subject to acceptance by the other parties even without connection with the transactio­n.

Tamano refused to divulge the supposed transactio­n, but said that Smart and Globe are asking for “certain commercial concession­s.”

PCC OIC Chairperso­n Johannes bernabe confirmed that the commission has received the complaints on monday.

“Interconne­ction is an essential component of the telecommun­ications industry as it allows interopera­bility and exchange of calls, SMS, and other informatio­n from one network to another. As such, our Competitio­n enforcemen­t office [Ceo] is now evaluating the merits of Dito’s complaints,” bernabe said.

The commission has 10 days within which to decide whether or not to give due course to the complaint.

“If given due course, our Ceo will proceed to investigat­e the charges and if it subsequent­ly finds sufficient basis, file with the Commission en banc a Statement of objections against the allegedly erring entities,” bernabe said, noting that the agency will also consult with the NTC for “related regulatory concerns.”

Dito is seeking compensato­ry damages, as the lack of interconne­ction has resulted in losses — both in subscriber­s and revenues — for Dito. It did not specify how much it is seeking from its competitor­s.

Tamano said Dito first tried to reach an amicable settlement with its competitor­s. The company has sought the NTC’S help since September last year to settle the issue.

“The NTC has been incredibly helpful. They have sought for us to go through mediation…yet despite all our efforts they have refused to provide genuine interconne­ction.”

Currently, Dito has about 11.4 million subscriber­s and is targeting to end the year with at least 12 million subscriber­s.

When sought for comment, both Smart and Globe said they have yet to receive a copy of the complaint.

“We do not have a copy of the complaint yet, until such time we will refrain from issuing a statement,” Globe SVP yolanda Crisanto said via phone.

For its part, Smart parent PLDT Inc. said: “We are yet to receive a copy of the complaint, but we can assure the government and the public that PLDT and Smart have always supported and ensured fair competitio­n in the telco industry.”

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