PLDT Inc. yesterday asked third telecom player DITO Telecommunity Corp. to settle P430 million in unpaid contracted service fees until early next month to avert the termination of their transmission services.
PLDT clarified in a statement that DITO’s P430 million unsettled obligation is for the cost of building transmission facilities.
Upon DITO’s request, PLDT agreed to build and lease the transmission facilities to the former, while also providing interconnection services to benefit both telcos’ subscribers.
“PLDT built, delivered, and leased the transmission facilities for DITO on schedule, while DITO repeatedly delayed in paying PLDT the contracted milestone payments for the facilities in the hundreds of millions of pesos,” PLDT said.
PLDT added it has finished the transmission facilities and DITO continues to use the facilities to provide services to its subscribers.
“But DITO has now refused to pay the final P430 million balance it owes PLDT for building the facilities,” PLDT said.
According to PLDT, the issue on illegal overseas calls has nothing to do with DITO’s refusal to pay an overdue obligation to it for transmission facilities.
“Accordingly, PLDT reserves all of its remedies in case DITO does not cure its latest major payment default within the applicable 30-day cure period, including the suspension or termination of services under the parties’ service agreement,” PLDT said.
Last Friday, Adel Tamano, DITO chief administrative officer, said PLDT’s disclosure on the notice of material breach and demand for payment was “misleading.”
Tamano further said DITO, in a series of letters to PLDT and prior to the delivery of the transmission facilities, informed the latter that these are no longer needed.
Tamano added the parties have initiated talks to amicably resolve the issue but PLDT, in material breach of the dispute resolution mechanism under the parties’ agreement, still proceeded in pursuing the claim.
“PLDT violates the parties’ confidentiality agreement for the unwarranted disclosure because it was made without prior written notice to and/or written consent of DITO as required in the contract,” Tamano said.
