By Roderick T. dela Cruz

Bayan Telecommunications Inc. said it has forged a co-branding agreement with Multi-Media Telephony Inc. that allows the two companies to share facilities and revenues.

John Rojo, Bayan’s vice president for Corporate Brand Communications, said the co-banding and revenue sharing agreement was not a management takeover of Multi-Media Telephony Inc.

Rojo clarifiedthat BayanTel, the telecom unit of the Lopez group, did not acquire 65 percent of Multi-Media Telephony, a former paging and call center operator that has diversified into wireless broadband services.

Under the co-branding and revenue sharing arrangement, Bayan has been allowed to use its partner’s base stations and frequencies, which enabled the Lopez firm to expand the coverage area of its wireless landline loop and increase its subscriber base.

However, other parties questioned the nature of the agreement, saying BayanTel failed to disclose to regulators like the rehabilitation court, which oversees BayanTel’s rehabilitation plan.

The parties questioning the agreement said BayanTel also failed to inform Congress, which exercises oversight functions over various entities that have been issued with congressional franchises, and the National Telecommunications Commission which exercises regulatory powers over all telecommunications entities.

BayanTel is still operating under a court-approved rehabilitation plan, which seeks to meet its loan service requirements of at least $325 million.

The rehabilitation plan requires any expansion or merger plans to undergo approval by the court-appointed receiver.

Bayan has a congressional franchise to provide landline and international gateway facility services.