Subject: [NEXTEL-1] Regulators order Nextel to justify license

From: Marcel <[email-masked]>
Date: Sun, 17 Nov 2002 00:52:45 -0500

Regulators order Nextel to justify license
Posted:10:39 PM (Manila Time) | Apr. 23, 2002
By Abigail L. Ho

Inquirer News Service

THE NATIONAL Telecommunications Commission has itself become a co-complainant in several
cases filed against trunk radio operator Nextel Communications Philippines Inc.
In a statement issued Tuesday, advocacy group Citizens Movement for Protectionism and
Reform (CMPR) said NTC chief Eliseo Rio Jr. gave an assurance of a swift and judicious
resolution of the cases.

“The commission has already become a co-complainant in the case, causing the issuance of
an immediate show cause order against Nextel to explain why its provisional authority
should not be revoked,” Rio told CMPR officials and members in a dialogue on Friday.
Over a hundred members of CMPR accompanied their officials in lobbying for the NTC’s
immediate action.

“It appears that (Nextel) has committed offenses consisting of violations of certain
provisions of the Constitution; the Public Service Act (Act 146), as amended; the Foreign
Investment Act of 1991, as amended; the Rules and Regulations of the Commission; as well
as conditions of its provisional authority,” the NTC said in a two-page show cause order
issued on Feb. 6.
The order was issued in response to a complaint filed against Nextel by telecommunication
lawyer Winston Abuyuan early this year.

Apart from accusing Nextel of deliberately violating the 40-percent constitutional cap on
foreign ownership of utilities, CMPR also filed a motion before the NTC to immediately
revoke Nextel’s license to operate.

The group alleged that Nextel caused the transfer of its shares of stocks to its parent
firm, Nextel International Inc., through the use of dummy corporations.
Nextel Philippines allegedly incurred millions worth of dollar-denominated loans because
of the transaction, giving Nextel International a 59-percent stake in the trunk radio
service provider.

Nextel not only violated the Constitution but also a provision in its license that it
first had to seek NTC approval before it transferred or sold its shares of stocks or
secured loans, CMPR said.

“NTC’s promise to us was proof of our government’s resolve to stop a number of anomalies
in the telecoms industry. Nextel’s more than 50,000 subscribers will continue to receive
poor service if the company will just be content on violating our laws instead of giving
what is due to its client,” CMPR said.

from www.inq7.net
URL: http://www.inq7.net/inf/2002/apr/24/text/inf_4-1-p.htm

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