this is what u get for investing in lousy countries.
Relay towers of SingTel's Globe blasted by rebels in
Philippines
Attacks made to force 'revolutionary tax' payments
FOR refusing to pay 'revolutionary taxes' to communist rebels,
SingTel's listed Philippine unit, Globe Telecom, has paid a heavy
price.
Based on latest police count, 22 relay towers of Globe had been
blasted by the rebels, disrupting communication signals and
depriving the company of revenue. 'These attacks are meant to force
us to pay revolutionary taxes,' a senior Globe official, who asked
not to be named, told BT. 'But we will never bow to their
demands.'
Police traced the attacks to the 8,000-strong communist New
People's Army (NPA), the armed wing of the National Democratic
Front, which is waging a revolutionary struggle in the
countryside.
The NPA, listed by both the US and European Union as a terrorist
organisation, has levied taxes on businesses to bankroll the
communist movement. Those who fail to comply would incur its wrath
- and punishment. Hardest hit are those operating in rural areas,
the hotbed of the communist insurgency. Heavy equipment of
construction firms building roads is burned, while traders are held
hostage.
In the case of Globe, putting up cell sites in the mountains is an
integral part of its telecom infrastructure. As they are located in
remote areas, the sites are highly vulnerable to attacks.
The NPA has slapped a revolutionary tax of 170 million pesos (S$5.3
million) a year on Globe, a company official said. The amount
represents the 'taxable' network of cell sites the telco has built
from Luzon to the Visayas and Mindanao regions.
As of last September, Globe's number of relay stations nationwide
totalled 4,944, up 92 per cent from end-2003, enabling the telco to
raise its geographic coverage to 92 per cent and population
coverage to 97 per cent. Globe is the country's second largest
mobile phone company, next to Smart.
Though the rebels had disabled only a fraction of the cell sites,
they vowed to destroy more should Globe remain defiant. They
usually bomb the sites with improvised explosives or burn them with
gasoline.
Globe has sought the help of the police and the military in
cracking down on the rebels. While the company 'remains vigilant in
ensuring that the public continue to enjoy uninterrupted telecom
services, its job is being hindered by the spate of violent
attacks', it said in a recent letter to the country's police and
military chiefs.
Each site, equipped with a power generating set and other related
facilities, costs Globe 7 million pesos to put up. With 22 sites
ruined by the rebels, the firm incurred 154 million pesos in
losses, almost about the tax amount the rebels want to extract from
Globe. However, the foregone revenues following the shutdown of the
sites have not been taken into account.
Not all sites, however, were destroyed. Some were partly damaged,
apparently meant only as a warning to Globe that the taxes were
due. Such sites were quickly restored in two to three days.
Surprisingly, only Globe has experienced rebel attacks. Two other
major telcos - Smart and Sun - have been spared, fuelling
speculation that they pay taxes to the insurgents. Sun is owned by
taipan John Gokongwei.
Police had dissuaded Globe from succumbing to pressures from the
NPA rebels, describing them as a 'bunch of extortionists'.
'The recent attacks of the NPA, particularly on Globe cell sites,
are terrorist acts. We will go after them,' said Philippine
National Police chief Arturo Lomibao.
