Millicom denies BayanTel claims

Millicom International Corp. denied yesterday allegations of Bayan Telecommunications Inc. (BayanTel) that it is preventing the latter from taking part in the management of Express Telecommunications Co.

At the same time, David Harris, Express Telecom chairman, reaffirmed Millicom's commitment to the company despite its lackluster performance in the last several years.

Harris stressed that contrary to allegations of BayanTel, all key decisions related to the development of Express Telecom's business continue to be taken jointly with the full involvement of the shareholders.

In fact, he said that there are working teams from BayanTel and Express Telecom, with the support of Millicom in Singapore, which are looking at specific opportunities to enhance and strengthen the business.

Likewise, he said that the shareholders have discussed and endorsed the Express Telecom system plans for 2000 and beyond.

"In the past 12-18 months, there is a very strong working relationship (between BayanTel and Millicom). There was not a decision made by the board without the knowledge of the shareholders. That is to show that there is participation of all parties in the decision-making and operations of the company," Harris said.

Earlier, BayanTel president Rodolfo Salazar complained of Millicom's refusal to allow the Lopez-owned firm to help in managing Express Telecom despite having poured in about P6 billion in the cellular phone company.

BayanTel even publicly announced its desire to give up its 46.6-percent stake in Express Telecom or buy out the shares of Millicom totalling 40 percent. The remaining shares are being held by Mayon Holdings of GMA network and several individuals.

However, BayanTel is placed at a no-win situation since nobody is interested in Express Telecom which is currently working for the restructuring of its P2-billion debt while Millicom is unlikely to leave the firm.

"We are committed to the Philippines and to providing low cost, value-added telecommunications services to all our customers. Our intention is to continue investing in and developing our business, particularly in the area of prepaid services," Harris stressed.

Although Harris admitted that Millicom is not happy with the overall financial performance of Express Telecom, he said that they continue to see the potential in the market based on what the present management has achieved so far as well as on the trends happening in the industry.

"Millicom is very resilient. If we leave every market where we encounter difficulties then we will not be successful. We believe in the fundamentals of this market and we see a positive development in where we are," he said.