Opinion No. 10-19 RE : Scope of Globe Telecom, Inc.'s authorized retail activity

. ..' ~ ' • Republic of the Philippines o SECURITIES AND EXCHANGE COMMISSION SEC Bldg.EDSA, Greenhills, Mandaluyong City OFFICE OF THE GENERAL COUNSEL 27 April 2010 SEC-OGCOpinion No. 10-19 Scope of Globe Telecom, Inc.'s' authorized retail activity Romulo Mabanta Buenaventura Sayoc & De Los Angeles 30th Floor, Citibank Tower 8741 Paseo de Roxas, Makati City ATTENTION: Attys. Agustin R. Montilla, IV and CarfbsMartin M.,Tayag . !. Gentlemen: This refers to YOlJr02 March 2010 letter requesting cohtirmation of your view that Globe Telecom, Inc.'s ("Globe," for brevity) propos~d sale of devices for the transmission of telecommunications, both mobile off broadband, and peripheral devices and accessories is within Globe's scope of authority. I ;', The Commission has previously opined that "Globe's pbwer to distribute ,and sell telephone units and accessories to its clients and su:bscribers is within the corporate authority specified under its charter, congressipnal franchise and Section 36, paragraphs 7 and 11 of the Corporation Code oftbe Philippines. The intended activities are necessary, incidental and form an irit~gral component of providing telecommunication services. lll ', 'y/ ' , ~ 'e d ll,' i' \}o . =:' I.. 1 ' ': ,::: 31 May 2001 SEC Opinion addressed to Attys. Rosanno P. Nisce and Bob L. GUinto. : Page I of 2

. .- . " .. . ~ -.•... • A ..... V ,y.' ... "communications systems by radio, G\obe's franchise allows it to operate wire, cable, satellites, and any other means now known to science or which in the future may be developed for the reception and transmission of telecommunications." Thus in keeping with the Commission'sprevious opinion and in light of the recent technological developments, it seems that Globe has the authority to distribute and sell devices for the transmission of telecommunications through mobile and broadband technology. In the same vein, the authority of Globe to sell peripheral devices and accessoriesdepends on whether such products are necessary to the transmission of telecommunications. If such products are not vital to the transmission of telecommunications but only serve as embellishments.. then it is doubtful that the sale of such products still falls within Globe's franchise. However, we emphasizethat the Commission'sopinion on this matter is not conclusive. We note that the National Telecommunications Commission C'NTC," for brevity) is the sale body that exercises jurisdiction over the supervision, adjudication and control over all telecommunications services. Thus, it is more appropriate for you to submit the subject issue to the NTCfo.r consideration. This Opinion is rendered based solely on the facts and circumstances disclosed and relevant solely to the particular issues raised therein and shall not be used in the nature of a standing rule binding upon the Commission in other cases whether of similar or dissimilar circumstances. If, upon investigation, it will be disclosed that the facts relied upon are different, this opinion shall be rendered null and void. Pleasebe guided accordingly. VERNETTE G. UMALI-PACO General Counsel