PCC: New telco must stay away from PLDT, Globe

Manila -- A prospective new telco player should keep a safe distance from the industry’s existing duopoly.

This was the stand of the Philippine Competition Commission (PCC) on the latest terms of reference by the Department of Information and Communications Technology (DICT), which utilizes the highest committed level of service (HCLOS) as the mode of selection for the new major telco player.

The bidder to be selected as the country’s new major player should not have any merger plans or joint venture agreements with either the dominant telco players, the PCC said.

“In the event that the participant merges or enters into any business combination or joint venture with a Related Party to any Dominant Telecommunications Player, or otherwise acquires, directly or indirectly, or in stages at least 20 percent of the shares of stocks of a Related Party to any Dominant Telecommunications Player, it shall notify the Philippine Competition Commission of the said transaction, in accordance with applicable law, rules and regulations,” the commission said on its inputs in the terms of reference for the third telco, which was released to the media Monday.

Furthermore, the participant must return their assigned frequencies to the National Telecommunications Commission (NTC) in the event that it becomes a related party to dominant players PLDT Inc. and Globe Telecom./