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TXTPower's Opposition pleading

TXTPower's Opposition pleading

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Published by tonyocruz
Filed May 25, 2011, this pleading states TXTPower's Opposition to the PLDT-Digitel transaction.
Filed May 25, 2011, this pleading states TXTPower's Opposition to the PLDT-Digitel transaction.

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Published by: tonyocruz on May 26, 2011
Copyright:Attribution Non-commercial

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05/12/2014

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 1
REPUBLIC OF THE PHILIPPINES
NATIONAL TELECOMMUNICATIONS COMMISSION
Quezon City
In Re: Application for the sale andtransfer to the Philippine LongDistance Telephone Company of initially approximately 51.55% equityin Digital TelecommunicationsPhilippines, Inc. Pursuant to Section20(h) of Commonwealth Act No. 146(Public Service Act) with a prayer forProvisional Authority.PHILIPPINE LONG DISTANCETELEPHONE COMPANY ANDDIGITAL TELECOMMUNICATIONSPHILIPPINES, INC. ,
 Applicants
.
 
NTC Case No. 2011-072
x---------------------------------------------------------x
 
OPPOSITION
Oppositor
TXTPOWER.ORG INC.
(hereinafter referred to as“TXTPower”), through the undersigned, respectfully states:1. Section 4 of the Public Telecommunications Policy Act of thePhilippines (Republic Act No. 7925), declares that telecommunications isessential to the country’s economic development, integrity and security of the,and as such shall be developed and administered as to safeguard, enrich andstrengthen its economic, cultural, social and political fabric.2. The importance and crucial value of telecommunications in thelife of a nation, as well as the Government’s role in harnessing its fullpotential, was highlighted by the Supreme Court in the case of 
Globe
 
 2
Telecom, Inc. v. National Telecommunications Commission
, 435 SCRA 110 (2004), wherein it stated that:“Telecommunications services are affected by a highdegree of public interest. Telephone companies have historicallybeen regulated as common carriers, and indeed, the 1936 PublicService Act has classified wire or wireless communicationssystems as a ‘public service,’ along with other common carriers. Yet with the advent of rapid technological changesaffecting the telecommunications industry, there has been amarked reevaluation of the traditional paradigm governing stateregulation over telecommunications. For example, the UnitedStates Federal Communications Commission has chosen not toimpose strict common regulations on incumbent cellularproviders, choosing instead to let go of the reins and rely onmarket forces to govern pricing and service terms.In the Philippines, a similar paradigm shift can bediscerned with the passage of the Public Telecommunications Act of 1995 (‘PTA’). As noted by one of the law’s principalauthors, Sen. John Osmeña, under prior laws, the governmentregulated the entry of pricing and operation of all publictelecommunications entities. The new law proposed to dismantlegradually the barriers to entry, replace government control onprice and income with market instruments, and shift the focusof government’s intervention towards ensuring servicestandards and protection of customers. Towards this goal, Article II, Section 8 of the PTA sets forth the regulatory logic,mandating that ‘a healthy competitive environment shall befostered, one in which telecommunications carriers are free tomake business decisions and to interact with one another inproviding telecommunications services, with the end in view of encouraging their financial viability while maintainingaffordable rates.’ The statute itself defines the role of thegovernment to ‘promote a fair, efficient and responsive marketto stimulate growth and development of the telecommunicationsfacilities and services.’xxx xxx xxxThe NTC is at the forefront of the government response tothe avalanche of inventions and innovations in the dynamictelecommunications field. Every regulatory action it undertakesis of keen interest not only to industry analysts and players butto the public at large. The intensive scrutiny is understandablegiven the high financial stakes involved and the inexorableimpact on consumers. xxx”
 
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3. Pursuant to Section 4 of R.A. No. 7925, the following principlesand policies shall guide the Government as it shepherds the growth anddevelopment of telecommunications services in the country:“a) A fundamental objective of government is todevelop and maintain a viable, efficient, reliable and universaltelecommunication infrastructure using the best available andaffordable technologies, as a vital tool to nation building anddevelopment;b) The expansion of the telecommunications networkshall give priority to improving and extending basic services toareas not yet served. For this purpose, government shallpromote a fair, efficient and responsive market to stimulate thegrowth and development of the telecommunications facilitiesand services, with emphasis on the accessibility by persons tobasic services in unserved and underserved areas at affordablerates;c) The radio frequency spectrum is a scarce publicresource that shall be administered in the public interest and inaccordance with international agreements and conventions towhich the Philippines is a party and granted to the bestqualified. The government shall allocate the spectrum to serviceproviders who will use it efficiently and effectively to meetpublic demand for telecommunications service and may avail of new and cost effective technologies in the use of methods for itsutilization;d) Rates and tariff charges shall be fair, just andreasonable and for this purpose, the regulatory body shalldevelop tariff structures based on socioeconomic factors and onfinancial, technical and commercial criteria as measures toensure a fair rate of return and as a tool to ensure economic andsocial development;e) Public telecommunications services shall beprovided by private enterprises. The private sector shall be theengine of rapid and efficient growth in the telecommunicationsindustry;f) A healthy competitive environment shall befostered, one in which telecommunications carriers are free tomake business decisions and to interact with one another inproviding telecommunications services, with the end in view of encouraging their financial viability while maintainingaffordable rates;g) A fair and reasonable interconnection of facilities of authorized public network operators and other providers of telecommunications services is necessary in order to achieve a

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