PLDT has given DITOPLDT requests that DITO Telecommunity pay ₱429 million in service costs, but the third player in the telecommunications industry refuses to settle the dispute.
Notice of material breach and a demand for payment was sent to Dennis Uy’s DITO by the Pangilinan-led PLDT on Friday. October 7, and were file with the stock exchange. The notice and demand related to the construction and provisioning of transmission facilities, which DITO is currently using to deliver telco services to subscribers.
PLDT has given DITO a deadline of thirty days, which is November 4.
PLDT will be force to “use all of its rights under the law and contract to protect its interests. Which may result in the suspension or termination of the service agreement that DITO has with PLDT.
PLDT has given DITO
Will DITO subscribers be unable to contact Smart users if PLDT terminates the service agreement?
“that will not happen if Dito uses alternative transmission facilities.” — PLDT.
DITO said firmly that what PLDT told the Philippine Stock Exchange was “misleading.”
DITO said its deal with PLDT and Smart Communications, part of PLDT, was about the companies’ obligations under the interconnection agreement. Laws state that all networks must be able to send and receive messages from each other.
DITO said that Smart doesn’t want to add more space.
Remember that DITO said that only 30 out of every 100 calls from DITO customers go to Smart and Ayala-led Globe?
This led DITO to file a complaint with the Philippine Competition Commission against its rival networks, saying they were abusing their dominant position in the telco market.
“Smart’s adamant refusal to augment DITO ‘s capacity (to interconnect with Smart’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. Thus, DITO, in a series of letters to PLDT and before the delivery of the subject transmission facilities, informed the latter that the same is no longer needed” — DITO.
Globe and PLDT had said before that adding more capacity couldn’t be talk about until DITO fixed the problem of fraudulent calls going through its networks. DITO noted that the company is also a “victim” of these scam calls.
