GLOBE Telecom Inc. on Wednesday warned the government of spectrum applicants, speculators and consortia driven by “financial players” who eventually sell out for business gain.

In a statement, the Ayala-led telecom company said distributing spectrum allocation to different players will benefit consumers.

Globe said the acquisition of Digital Telecommunications Philippines Inc. (Digitel) by Philippine Long Distance Telephone Co. (PLDT) gives the merged entity virtual monopoly and control of the radio frequencies, which compared with highways, are the modes and means of transmitting voice, data and text messages.

Citing National Telecommunications Commission (NTC) data disclosed during a recent hearing of the Senate Committee on Public Services, Globe said the PLDT-Digitel group has a 51-percent share of 3G and CMTS (cellular mobile telecommunications systems) frequencies.

In contrast, Globe has a 23-percent share to service over 27 million subscribers.

During the Senate hearing, NTC Commissioner Gamaliel Cordoba had said the government has 6 percent or 10 megahertz (MHz) of 3G frequency left for allocation, which is the subject of litigation.

Globe said the assignment of radio frequencies directly relate to the ability of service providers to efficiently use this scarce resource through capital and infrastructure investments.

In the same Senate hearing, Rodolfo Salalima, Globe chief legal counsel, warned that the PLDT-Digitel deal violates the NTC Memorandum Circular 07-08-2005, absent a frequency reallocation.

According to the circular, “entities with more than 50 percent of common stocks owned by the same person or group of persons shall be considered as associated applicants, at the time of application, and such entities shall be allowed to elect one of them to proceed in the filing of application for 3G services and 3G radio spectrum before the Commission.”

Globe serves 27.3 million subscribers with 99 MHz, while PLDT unit Smart and Digitel’s Sun Cellular will serve 60 million subscribers with 372 MHz.

“This means Globe is serving 276,000 subscribers for every 1 MHz of spectrum it has while Smart and Sun will only address 161,000 subscribers for their every 1 MHz of spectrum,” Salalima said.

In terms of 3G service, the ratio of PLDT to Globe’s allocation is 4.5:1, which is “a clear disservice to millions of Globe subscribers at present,” he said.

“If PLDT-Digitel is saying they need all the frequency they have with only 60 million subscribers, Globe subscribers are also entitled to a fair share of the state’s frequencies which they should enjoy through better products using more advanced technology,” the lawyer said.

With Globe’s 10 MHz to serve 27 to 30 million subscribers, then PLDT should have only 23 MHz for its 60 million subscribers, he said, adding that PLDT should divest of its unused 22 MHz frequency.