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Security Name : Digital Telecommunications Phils., Inc.
Date : 07/19/2007
Headline : Globe bucks Digitel plan to tap foreign partner
Content : Digital Telecommunications Philippines, Inc. wants to transfer its authority to operate an international cable landing station in Cavite to its subsidiary Digitel Crossing, Inc. (DCI). However, rival Globe Telecom opposed the plan, saying the move is a ploy to open up the operation of domestic telecom services to foreign partners. Globe filed its opposition before the National Telecommunications Commission after Digitel Telecommunications sought regulatory permission to assign and transfer the certificate of public convenience and necessity (CPCN) to DCI for the operation and maintenance of international cable landing station in Timalan, Naic Cavite, and transmission network linking it to its telehouse in Makati City. Globe claimed DCI is not qualified to operate a cable landing station and blackhaul facility because it does not have a license to operate as an Inter-Exchange Carrier. In addition, Globe said Digitel's subsidiary does not have the technical and financial resources and capability to operate and maintain an international cable landing station. Based on the documents submitted by DCI, Globe said its paid up capital is a measly P25 million. "This corporate capital is not enough to sustain the cost of operating, maintaining and upgrading an international cable landing station which estimated to reach more than $100 million," Globe said. Globe also claimed that DCI will not be the operator itself, but its foreign partner Asia Netcom, which owns East Asia Crossing network that landed in the Digitel cable landing station. "We submit that there is no reason for the proposed assignment of a speculator with no track record except that it shall be used as a vehicle for Asia Netcom to offer and operate domestic telecommunications services in the country and offer blackhaul capacity for sale to foreign parties, without any authority from the [NTC] and in violation of the Constitution and existing laws that public services shall only be operated by Filipino citizens or by corporations 60 percent of which are owned by Filipinos," the country's second largest mobile phone service said. Globe also noted the transfer is only the authority to operate the cable landing station, and not the equipment, the network, or the cable station and Digitel will continue to retain ownership of the facilities. With these, Globe has asked the NTC to dismiss the application of Digitel to transfer its authority to its subsidiary.
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