DITO claims PLDT in breach of confidentiality agreement

Dennis Uy’s DITO Telecommunity has immediately struck back at PLDT Inc. after bilyonaryo Manny V. Pangilinan’s telco giant demanded it to pay P429.7 million in unpaid services.

DITO Telecommunity chief administrative officer Adel Tamano said PLDT violated the parties’ confidentiality agreement for the unwarranted disclosure because it was made without prior written notice to and/or written consent of the company as required in the contract.

“Parties have initiated talks to amicably resolve this issue, but PLDT, in material breach of the dispute resolution mechanism under the parties’ agreement, still proceeded in pursuing this unreasonable claim,” Tamano said.

PLDT disclosed to the Philippine Stock Exchange today that it served DITO Telecommunity yesterday a notice of material breach and demand for payment as a result of the latter’s refusal to pay P429.726 million for contracted services “which PLDT has fully performed and delivered to DITO.”

The services relate to the building and provisioning of transmission facilities that DITO is currently using for the delivery of telecommunication services to its subscribers.

“The information we believe is misleading,” Tamano pointed out.

Tamano said DITO was compelled to enter into an agreement with PLDT for the provisioning of the transmission facilities
to allow the new major player to interconnect with the subscribers of Smart Communications Inc. for the purpose of supporting the parties’ obligations under their interconnection agreement.

“Smart’s adamant refusal to augment DITO’s capacity (to interconnect with Smart’s subscribers) has to no small degree compromised DITO-Smart voice traffic, adding to the underutilization of the initial bandwidth capacity provided by SMART to DITO,” Tamano said.

“Thus, DITO, in a series of letters to PLDT and prior to the delivery of the subject transmission facilities, informed the latter that the same are no longer needed,” he added.

PLDT, on its end, said DITO has 30 days or until November 4 to remedy the breach and pay the P429.7 million owed to the company.

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

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