In correlation to the issue about PLDT-Digitel Merger, section 19, Art. XII of the 1987 Constitution states: “The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed.”. Essentially the same provisions can be found in the franchises of PLDT, RA 7082 renewed in 1991, Globe Telecom RA 7229 granted in 1992, and Smart Communications RA 7294 also in 1992. This provision was also reiterated in the franchise granted by Congress in 2002 to Digitel Mobile Philippines, Inc., which owns Sun Cellular. Under the said franchises, Digitel, PLDT and Globe – the top three telecommunications companies – are required to get congressional approval before any lease, transfer, grant of usufruct, sale, and transfer of rights and privileges of their franchise.
First thing’s first. The merger is illegal because such a buyout or swap and share deal, whatever you call it, requires congressional approval. This is explicit in Digitel’s and Digitel Mobile’s franchises. Proponents of the merger say congressional approval of such mergers and acquisitions have already been waived by virtue of the 1995 Public Telecommunications Policy Act (RA 7925), which ensures equality of treatment for franchise holders. Now that were the words from Bayan Muna Representative Teddy A. Casino. Why do you think the Congress did such provisions? Will this help us in our queries?
Of course, the congress stated these provisions as to avoid the monopoly between the telecommunication companies. But if these provisions are stated within the franchises of the companies and also in our constitution, then why does the congress act like they should not interfere with this matter?
ReplyDeleteIn terms of the costs and services, I believe that these two companies, pldt & digitel, should thoroughly discuss as to how they could more improve the services they offer to the consumers; it should be that both the companies and the consumers will fairly benefit from it.
The congress did such provisions to protect both the consumers and the sellers from every business. If the said deal is illegal, then why isn't there anybody doing anything about it?
ReplyDeleteIndeed, it is a good deal for PLDT but it is such an unfair treatment for us consumers.
right move by the congress!this is clearly a monopoly and this is not allowed under the 1987 constitution as this will negatively impact the interest with regards to prices of cellular phone services...government cant allow any monopoly by any telecommunication companies....,
ReplyDeletecongress did what is the right thing to do. they know it will be unfair to others.they just want equal.monopoly should not be allowed.
ReplyDeletewhat the congress did was just right maybe because the congress think about the imbalance between telecommunication companies... monopoly may increase companies sales but it may result to imbalance in the competition of the companies...and so monopoly should be prohibited depending on the situation of the different companies...and i think there are times that it will affect our cost and services that we have in our everyday life...
ReplyDeletethank you :))
what the congress did was just right maybe because the congress think about the imbalance between telecommunication companies... monopoly may increase companies sales but it may result to imbalance in the competition of the companies...and so monopoly should be prohibited depending on the situation of the different companies...and i think there are times that it will affect our cost and services that we have in our everyday life...
ReplyDeletethank you :))
Why do you think the Congress did such provisions? Will this help us in terms of the costs and services?
ReplyDeleteI think the Congress did such provisions to help the telecommunication industry to grow in that days, considering that the last provision was done in 1995 where Telecommunication industry is just sprouting up their seeds of growth during that years and there is a need for that provision to help the said industry. Will this help us in terms of the costs and services? I should say yes, for the basis that the provision did help our Telecommunication industry to grow...
If the Congress thinks that the merger between this two companies is illegal and have laws that prohibits such monopoly to happen, then they should have acted sooner before the merger should have occurred in the first place. Its best if the congress should implement laws that stick rather than those that companies could find "loopholes", for the sake of all the people concerned. There is no questions on why the congress has this provisions made, it is important that they have such laws to protect the interests of the consumers as well as the companies involved in it.
ReplyDeleteThe RA 7925 does not contradict to the Article XII section 19. Because, what is being implemented on RA 7925, is the act to promote and govern the development of Philippine telecommunications and the delivery of public telecommunications services. That means they didn’t state any approval of merger but to develop our Philippine telecommunication to be more accessible to citizen and government entities. If the congress and proponent of merger ensure equality of this merger proposal, well they didn’t actually mean it. But to fool us that it was their goal, how can a merger company ensure equality when it does not care of the other telecommunications companies. What a great pretender. I really don’t know why the congress approves this merger proposal, whatever their reason I hope this is for the good of the whole nation.
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ReplyDeleteThe congress did such provisions to have a fair competition among the sellers or companies, and these provisions will indeed help and protect the consumers in terms of the costs and services that such telecommunication is offering..
ReplyDeleteThe congress is right about this issue,, it should be unfair for other companies so an immediate action should be done in order for both companies and consumers have an equal treatment
ReplyDeleteIt's seems like congress is doing its job after all, or is it? call it what ever you want but this issue more than proves that congress is protecting some interest, the telecom companies are protecting some interest, but definitely not the customers'.
ReplyDeleteI think the congress did such provisions to protect the interests of the consumers. To avoid monopoly, the congress is right in prohibiting the merging of any company or corporation without their approval. It's no wonder why people rearted to such move because we already experienced monopoly in telecommunication industry when PLDT controlled the telecommunications before. Now it's bound to happen again. The consumers will be more affected.
ReplyDeleteThe cost and services? For sure, what we are enjoying now like the unlimited call and text and other services which cost less and affordable to the public will change and may increase. We, the consumers, will surely suffer.
I think the congress did the right thing. They are just protecting the consumers from this selfish company. In addition to that the congress did that provision to protect the industry from monopolies. Indeed the merge between PLDT-SMART had just monopolize the telecommunication industry, and this will surely affect us consumers.
ReplyDeleteThe congress did these provisions simply because they care about the consumers and the producers. But what bothers me is that, even if such provisions exist, how come the government is not doing anything about it? Why are they keeping their hands off of this issue?
ReplyDeleteAnyway, I think this is a very important matter that requires a thorough discussion between the companies involved and of course, the congress as well.
It's just right what the congress did because they have think about us consumers and the one who will be benefited about this kind of issue. Yet as what happening today the congress and the companies involved should talk over or deliberate carefully about this issue.
ReplyDeleteThis is lame. PLDT and Digitel merging is a clear assumption that this will result into a economic molopoly. Even though the constitution states that it is illegal to have monopolization in a certain field of interest such as this telecommunication company, it did not state the actual calibration of what's monopolizing and what's not. The decision may lie into the hands of the people in the congress, but still I assume that this project will unfortunately push trough because of economic influence.
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ReplyDeleteThe congress did the right thing. They are just protecting the public or the consumers. It is unfair to the Globe if the PLDT and Digitel will merge. As I heard PLDT has already majority market share, if the PLDT and Digitel merge it will become more bigger market share. And also Digitel has many promos if they merge it might be gone and it is unfair to the public. If there's no competition it is not good for the consumers. The rate it might become expensive.
ReplyDeleteThe congress made this provisions to prevent monopoly int our country as well as in some way they are helping the consumers as well as the sellers.
ReplyDeleteWhat was wrong is that even they introduced this kind of provisions, they themselves would not act to this matter.
We all know PLDT and Digitel are one of the biggest company we have in the country,,with this i think that even with this kind of provisions thi merge will push through.
But as everybody says,i hope that the congress will do further investigations on this and hope will make the right decisions that will fair to all of us.
If business talks those businessman listen same thing with "If money talks everybody listen" in this case the congress did such things to protect both the consumers and the sellers from every business. If this become invalid the congress must be also involved to this issue. Let the truth be shine ! naks.haha hoping that the congress will do fair and better investigations regarding to this issue. :D
ReplyDeleteThe congress should not approve it for the sake of the people. :)
ReplyDeleteThey should just give to the people what they want. And if you ask, what do they "want"? TO STOP THE MERGER/MERGING. Ayt? And if they do stop it, YES. IT WILL HELP US. Darn it. They just made people go wild over the merger thing. Pfft! They're wasting their time. Grr.
ReplyDeleteI think they should do something about the merging of PLDT because it's unfair if they'll just let them! Dapat walang bias. Fair treatment ang kailangan para walang problema. :)
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