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.
sorry. i shld have put "was" instead of "is".