14 October 2014

Globe Telecom & BayanTel Regret Issuance of TRO

The prevention of National Telecommunications Commission (NTC) from acting the joint application for acquisition by Globe Telecom on majority stake in Bayan Telecommunications Inc. will have an impact on Bayan's customers in terms of services and improvements.
globe telecom bayantel
Globe+Bayan. Photo Yugateh
According to the Press Release of Globe Telecom, the said PLDT's petition for TRO dated October 9, 2014 will delay the proceedings and have a great impact of 350,000 BayanTel subscribers. With that, both Bayan and Globe regret the issuance of the Court of Appeals (CA) of a temporary restraining order (TRO).

On August 27, 2013, the Pasig Regional Trial Court granted the Joint Motion of Bayan and Globe to amend Bayan’s rehab plan and confirmed the amended it alongside the master restructuring agreement. 

Atty. Ariel B. Tubayan Bayan, Head of Legal and Regulatory Affairs, said that the bid will prevent both companies intention of improvements on its service.
“PLDT’s petition for a TRO will further delay proceedings and impact Bayan’s 350,000 customers in terms of much needed service improvements.  This bid to delay the completion of the corporate rehabilitation of Bayan hampers the intention of both companies to ensure the viability of Bayan’s operations,” 
Yet Globe Telecom is very hopeful for the completion of Bayan's rehabilitation. According to Atty. Froilan Castelo, General Counsel of Globe Telecom, the telecom industry should not be held hostage by a single dominant player.

The company also has the responsiblity to serve the needs of the Filipino consumers 

 “We are eager to see through the completion of Bayan’s rehabilitation. The telecommunications industry should not be held hostage by a single dominant player. As a public utility company, we have a responsibility to serve the expanding needs of Filipino consumers through improved products and services.”

Last December 2012, Globe Telecom assumed to control Bayan Telecom company, the Ayala-led telco agreed to pay BayanTel's debts both local and foreign creditors.

According to report, Globe said that about 98.26% of the total remaining principal amount of BayanTel's loans shall tendered not later than of December 21.

Technically, Globe is looking for more bandwidth and undertaking for a modernization program. The acquiring of BayanTel will allow Globe Telecom to use 1750-1760 mhz and 1845-1855 mhz frequencies. Thus, Globe will have additional Bandwidth.

Globe and BayanTel Is Not Happy for the TRO


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