Response of Globe to PCC
Globe recognizes the authority of the PCC which is why the company filed the notice of its 50% purchase of SMC telco businesses in accordance with the Commission’s own rules, particularly PCC Memorandum Circular 16-002 which requires only a notice of the transaction and such transaction shall be “deemed approved” and may no longer be challenged under Section 23.
“It is unfortunate that the PCC is reacting to news stories that are written not necessarily in the context of the parties’ submission. We have in fact given the PCC additional documents for their own reference and information,” said Globe General Counsel Atty. Froilan Castelo. “The submission of the notice under MC 16-002 underscores the authority of the PCC covering the amount of the transaction,” added Castelo.
Globe reiterates that the parties and their respective advisers reviewed the transaction to ensure compliance with all relevant laws, including the provisions of the Philippine Competition Act. The transaction will result in efficiency gains for the benefit of the public because it will immediately unlock underutilized frequencies that will help enable Globe to provide its customers better experience on mobile data services.
The Company did not enter into any prohibited act as defined under the PCC rules and guidelines. In addition, recognizing the importance of open market competition, the transaction did not result in any market share gain or loss for any of the three parties involved because the companies purchased were non-operating.
With having access now to the 700 MHz instead of allowing the resource to remain idle, and using it in various areas in the metropolis, the benefits are immediately seen in terms of faster mobile internet speeds and better quality of service to customers. As Globe rolls out more sites using the 700 MHz, the benefits brought about by additional capacity in serving our mobile data customers will be accelerated.