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Business

PLDT demands Dito to settle P429.7-M in unpaid contracted services

Ramon Royandoyan - Philstar.com
PLDT demands Dito to settle P429.7-M in unpaid contracted services
According to PLDT, they held up the end of the contract for constructing and provisioning transmission facilities essential for Dito’s commercial operations.
Philstar.com / Kristofer Purnell

MANILA, Philippines — Dennis Uy's Dito Telecommunity Corp. found itself in familiar territory after its rival PLDT Inc. served a notice to them to settle P429.73 million in unpaid contracted services that were crucial to the new telco player’s commercial operations.

In a disclosure sent to the Philippine Stock Exchange on Friday morning, PLDT said Dito, considered the third player in the country’s telco space, has refused to pay them for contracted services that include building and provisioning of transmission facilities that Dito needed, and is using, for the delivery of its services to subscribers.

Dito is looking to spend P50 billion for its rollout this year. Commercial services already started in Visayas and Mindanao, underserved consumer segments. 

READ: Dennis Uy avoids default after payment of Clark project debt

Dito, which is backed by state-owned China Telecom, figured at the center of controversy in August for accusing the duopoly of PLDT and Globe Telecom Inc. of anticompetitive practices. The Ayala-led telco fired back, demanding P622 million for fraudulent calls that the company claimed to have passed through Dito’s network to Globe.

That said, Uy’s business empire, which includes Phoenix Petroleum, is crumbling under a mountain of debt that has creditors demanding payment.

Shares in PLDT were trading down 0.92% as of 10 a.m. Friday while Dito shares were losing 1.77%.

READ: Phoenix says to address debt payment issues 'in the appropriate venue'

DITO TELECOMMUNITY CORP.

PHILIPPINE STOCK EXCHANGE

PLDT INC.

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