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PLDT demands DITO to settle over PHP 429-million debt

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Telco giant PLDT asked the third major player DITO Telecommunity to pay PHP 429.73 million in unpaid contracted services.
PLDT demands DITO to settle over PHP 429-million debt
The country's major telco players

PLDT threatens DITO amid unpaid obligation

PLDT said it issued a Notice of Material Breach and Demand Payment to Dennis Uy-led DITO after its "refusal" to settle the obligation.

PLDT said it is related to "the building and provisioning of transmission facilities that DITO is currently using for the delivery of telecommunication services to its subscribers."

The dominant carrier said DITO has 30 days from receipt of the Notice of Material Breach, or until November 4, 2022, to pay the multimillion-peso obligation owed to PLDT.

Otherwise PLDT will exercise all of its rights under law and contract to protect its interests, including suspension or termination of the parties’ service agreement, the company said.

In an issued statement, DITO said the information was "misleading."

The third telco player 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 affiliate/subsidiary, SMART Communications, Inc. (SMART) for the purpose of supporting the parties’ obligations under their Interconnection Agreement."

The company said Smart refused to increase DITO's capacity to interconnect with Smart subscribers.

In August, DITO filed a complaint before the Philippine Competition Commission against Globe and Smart over interconnection issues. During that time, DITO Chief Administrative Officer Adel Tamano said the two players "abuse" their dominant position.

According to him, only 20 to 30 out of 100 calls made from DITO could get through. However, requirements from the National Telecommunications Commission demand that interconnection quality should have a failure rate of 1 percent.
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