Alleged illegal ‘bypass’
operator sues PLDT
By Erwin Lemuel G. Oliva
Inquirer.net

A SUSPECTED international simple resale (ISR) operator from Mandaue City, Cebu has recently filed a countersuit amounting to P18.8 million against the Philippine Long Distance Telephone Co. and the head of the telephone firm’s Regional Revenue Assistance Center in Cebu.

In a document obtained by the INQUIRER, HPS Software and Communication Corp. accused PLDT and Gerardo Jose Castro of disrupting its business by "illegally, whimsically, arrogantly, maliciously and without any due process" depriving the firm of telephone services.

PLDT on Oct. 23 filed a complaint through Abello Concepcion Regala and Cruz law offices against HPS, which has been tagged of allegedly engaged in ISR. This civil case is now pending at the Regional Trial Court of Mandaue City.

INQUIRER has learned that the Presidential Anti-organized Crime Task Force of Visayas has conducted a "search" on Oct. 20 of the premises of the computer company with the PLDT personnel. The search resulted in the seizure of the company’s equipment suspected of being used for "illegal" activities.

HPS has, however, maintained that it has not been engaged in ISR since it has only been selling computer wares and has been a "total solutions provider" of computer services to customers in Visayas and Mindanao. It is also in the business of systems integration, which includes maintaining networked computer systems and installations.

ISR operators are engaged in so-called illegal bypass activities. They usually acquire international leased lines from the likes of PLDT, then "resell capacity" or international long distance calls at discounted rates to other companies or individuals. The act of reselling capacity is considered illegal because it deprives PLDT of the subsidy they need for operating its local exchanges. PLDT claims it loses around P3 billion a year as a result of these illegal bypass operations.

HPS has been using communication lines leased from local telephone service providers including PLDT. The company argues that it has been "regularly paying" PLDT its dues. But on Oct. 20, the company said PLDT, without due process, cut "telephone lines as well as other lines used by other companies and persons in the building" where HPS was housed.

The computer company also claims PLDT has likewise cut the telephone lines leased from Bayantel and Eastern Telecom. HPS, in turn, tried to reconnect the disconnected telephone lines several times, but was later served a "notice of disconnection" on Nov. 3. Gerardo Castro was identified as the person who signed the notice.

PLDT has decided to terminate telephone services to HPS because the latter has been tagged as being engaged in "illegal" activities of reselling international calls. On Nov. 7, PLDT once again disconnected HPS’ telephone lines, but were restored after 7 hours on that same day.

For the alleged "disruption" of its business, HPS has sued PLDT for damages amounting to a total of P18.8 million. HPS has also asked the regional trial court to issue a temporary restraining order, restraining PLDT from further disconnecting telephone lines of computer retailer cum systems integrator. Hearings are still being conducted on whether HPS be granted a temporary restraining order.

Stanley Yap, chief executive officer and managing director of HPS Software and Communication Corp. has filed a complaint against PLDT in behalf of the company on Nov. 6.