The standoff between Philippine operators PLDT and Globe took a nasty turn on Monday, as Globe revealed it had petitioned to have PLDT's licenses revoked.
Globe has asked regulator NTC to pull the licenses of PLDT and subsidiaries including Smart Communications, arguing that they are not Philippine nationals, Manila Times reported. Globe also wants PLDT to surrender its spectrum to be re-auctioned.
While 87% of PLDT's preferred and common shares are held by local investors, Globe argues that some 60% of voting rights are in foreign hands. Globe alleges that this makes the various approvals granted “void from the very beginning,” Dow Jonesreported.
Crucially, Globe also claims that the foreign ownership means NTC should block PLDT's deal to acquire a controlling stake rival DigiTel.
PLDT and Globe have been at loggerheads since this agreement was announced a in March.
Globe, which stands to be disadvantaged by a deal that would create a two-horse race in the Philippines, has repeatedly tried to block it.
PLDT last week pushed back the target date for the transaction due to delays receiving regulatory approval, and accused Globe of “resorting to flagrant distortions” to block the deal, via claims that PLDT is not a national utility.
On Monday, PLDT told Manila Times that Globe's newest petition to the NTC is just a rehash of these earlier allegations, and claimed that the NTC has already rejected the arguments.