Govt should put a stop to internet service monopolies
RESIDENTS of a large subdivision in Bacoor, Cavite have petitioned their city government for relief, claiming that the developer, the Villar Group’s Camella Homes, has prevented them from choosing an internet- or telephone-service provider by giving a monopoly to a single company, Planet Cable.
This is not the first time a situation of this sort has arisen in recent years, and while there is a remedy available to the affected residents through the Philippine Competition Commission (PCC), it may be an issue that should be brought to Congress for a permanent solution.
The current controversy affects about 2,000 residents of Cerritos Heights, Cerritos Terraces and Cerritos Hills in Bacoor, three phases of a large subdivision developed by Camella Homes in Bacoor. Due to an apparent exclusive agreement with Camella, Planet Cable is the sole provider of fixed internet for the subdivision.
In their petition, the Cerritos residents expressed anger over
Planet Cable’s “poor service and inefficient customer support.”
The service provider’s exclusive arrangement with Camella not only prevents them from selecting other fixed internet services, the residents said, but also prevents them from having landline telephone services. Camella
Homes, the petition claimed, has failed to provide any facilities to connect the extensive development to a regular telephone network such as PLDT.
The issue has become particularly critical for the Cerritos residents in the wake of the coronavirus pandemic, as reliable telecommunications services are a necessity for remote work and schooling, they added.
This kind of situation is frankly shameful. While there are some services such as electricity and water for which a monopoly within a certain area is realistically unavoidable, the only limitation that should be tolerated for optional services such as internet, telephone and cable television is the willingness of vendors to serve the neighborhood.
The complaint of the Cerritos residents, based on their petition to the Bacoor mayor’s office, seems to have been provoked by unsatisfactory service on the part of Planet Cable, which is an aspect of this case that we are in no position to judge. That, however, is irrelevant; even if the service provided by Planet Cable was outstanding, the monopoly arrangement offered by Camella Homes would still be unacceptable, a violation of antitrust laws for which the developer should be penalized and compelled to correct.
That is not simply our studied opinion, but a regulatory precedent already established by the PCC, which imposed a P27.1million fine on real estate developer 8990 Holdings for doing in one of its properties in Manila exactly the same thing as Camella Homes has done in Bacoor. In October 2019, the PCC acted on a complaint from residents of an 8990 condominium development in Tondo, Manila, finding that 8990 had acted illegally. To its credit, 8990 accepted the penalty and publicly apologized for its “overzealous” action, inviting other internet and telephone service providers to present their offers to their residents.
If they have not already done so, we would suggest that the aggrieved Cerritos residents consider presenting their complaint to the PCC for proper investigation and, if warranted, corrective action similar to that in the earlier 8990 case.
However, the fact that even after that earlier well-publicized decision by the PCC at least one major property developer is, apparently, still engaging in the very same illegal practice indicates that there may be a much bigger problem, one that might actually benefit from a legislative “investigation in aid of legislation.” If current antitrust laws and the presence of a competition oversight body with regulatory powers in the form of the PCC are insufficient to prevent real estate developers from engaging in this kind of abusive practice, then it is perhaps necessary to review those provided safeguards and improve its effectiveness. After all, legal remedies work best when their availability serves to deter illegal behavior; not simply to punish it.
The fact that a major property developer is still engaging in the illegal practice indicates there may be an issue that may be brought to Congress for a more permanent solution.