That was the message of the Philippine Chamber of Commerce and Industry (PCCI) to PLDT Inc. and Globe Telecom following the separate lawsuits filed by the two industry giants seeking to stop the  anti-trust body from reviewing their joint purchase of the telecommunications business of San Miguel Corp. (SMC).

PCCI is the largest business organization in the country.

George Barcelon, president of PCCI, told The STAR he found nothing wrong with the Philippine Competition Commission’s (PCC) plan to probe the deal.

“I think PCC is just trying to understand the deal. The PCC is rather new so they find that this is a case wherein they have to make due diligence,” Barcelon said.

Barcelon said allowing the PCC review to push through would also be beneficial to both PLDT and Globe in the end as this would clear their names of claims of violations of anti-competitive practices.

“I would like the PCC to continue the investigation. In fact, I don’t think it’s even an investigation, it’s just a review and there is nothing wrong with that,” he said.

From a telecommunications perspective, the deal would definitely improve the service in the country, Barcelon said but noted that there should be “some benchmark on the service and the cost” should it be cleared by the PCC.

“It cannot be that your investment there is very high and then you will pass on the costs to the subscribers. That would be a disadvantage to the subscribers who at present are paying already but not getting the service,” he said.

The P70 billion transaction covered the purchase of the entire equity interest in SMC’s Vega Telecom Inc., New Century Telecoms Inc. and eTelco Inc., with PLDT and Globe getting 50 percent each.

PLDT earlier said the reversal of the transaction would be detrimental to the public as the new frequencies were already providing Smart with “much needed additional capacities which are crucial in its efforts to provide faster, reliable and affordable mobile internet services throughout the country.”

The PCC earlier expressed disappointment over PLDT and Globe’s decision to elevate their case to the courts.

PCC chairman Arsenio Balisacan said while the agency respects whatever legal actions PLDT and Globe choose to undertake, the PCC was simply performing its obligations and mandate as provided by law.

Local and foreign business groups earlier said probing the multi-billion-peso telecommunications deal was “a good baptism of fire” for the newly-formed PCC and a good way to “cut its teeth on.”

Source: www.philstar.com/business