Connect with us

Hi, what are you looking for?

News

PLDT gives DITO more time to settle P430-million obligation

PHOTO FROM JGSUMMIT.COM.PH

THE PLDT group said it is giving DITO Telecommunity Corp. more time to settle its unpaid contractual obligation of P430 million.

“We’re being as patient as we can. We just want to make sure that it’s done properly. We’re still claiming what they owe us,” PLDT Inc. and Smart Communications, Inc. President and Chief Executive Officer Alfredo S. Panlilio told reporters on Tuesday.

“We’re giving them more time, and I think our teams continue to work with them to see what’s the best settlement,” he added.

In October, PLDT warned that “in case DITO does not remedy its material breach by Nov. 4,” it might look into “legal options, including suspension or termination of services.”

Listed DITO CME Holdings Corp. has said its telecommunications subsidiary DITO Telecommunity would “thresh out and exhaust all available remedies.”

“DITO Telecommunity believes that there is no material breach,” DITO CME said in a recent statement.

On Oct. 7, the Pangilinan-led PLDT said it had served DITO with a notice of material breach and demand for payment “as a result of its refusal to pay the amount of P429.73 million for contracted services which PLDT has fully performed and delivered, relating to the building and provisioning of transmission facilities that DITO required and is using for the delivery of telecommunication services.”

For its part, DITO said it was “compelled to enter into an agreement” with PLDT for the provisioning of the transmission facilities to allow DITO to interconnect with the subscribers of PLDT’s Smart Communications, Inc. “for the purpose of supporting the parties’ obligations under their interconnection agreement.”

The third telco player said Smart’s refusal to augment DITO’s capacity to interconnect with the latter’s subscribers “has to no small degree compromised DITO-Smart voice traffic, adding to the underutilization of the initial bandwidth capacity provided by Smart to DITO.”

“DITO, in a series of letters to PLDT and prior to the delivery of the subject transmission facilities, informed the latter that the same are no longer needed,” it added.

According to PLDT, its demand has nothing to do with the interconnection capacity issue.

“PLDT understands that [Smart Communications] is unable to give DITO any additional bandwidth until DITO agrees to compensate Smart for illegal overseas call traffic that is coming from DITO and which defrauds Smart and the government of legitimate income,” PLDT said in a separate statement.

“This has nothing to do with DITO’s refusal to pay an overdue obligation to PLDT for transmission facilities that DITO has asked PLDT to build and which DITO has leased from PLDT and which, to repeat, DITO continues to use,” it added.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

A market vendor arranges assorted vegetables inside the Quinta Market in Manila, Sept. 19. Vegetable prices continued to rise in November. — PHILIPPINE STAR/...

News

More policemen are deployed in Divisoria, Manila as the shopping area is expected to draw bigger crowds ahead of the holidays, Dec. 1. —...

News

PHILIPPINE STAR/ RUSSELL PALMA By Arjay L. Balinbin, Senior Reporter A PROPOSED MEASURE seeks to require National Economic and Development Authority (NEDA) Board approval...

News

BW FILE PHOTO THE MANAGEMENT ASSOCIATION of the Philippines (MAP) is seeking the creation of a public-private sector advisory council for various sectors, in...

News

UNSPLASH THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian.  Christmas is just around the corner and with it comes...

News

MANILA Electric Co. (Meralco) has secured a certificate of exemption from the Department of Energy (DoE) from the competitive selection process (CSP) for the...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.